What the numbers say:;The data compiled by The Block;has shown that;crypto exchanges retreated to the lowest monthly levels since 2020 in spot trading volume in May. The crypto trading platforms processed $439.42B of spot transactions last month, down from the three-year peak of $4.25T in May 2021. The previous low was seen in October 2020, when the spot trading volume only hit $222.7B. The decline;was mainly attributed;to the latest volatility trend in the crypto market that caused a risk perception in investors.
Relevance:;The Block's data has also pointed out that Binance still dominated the market in May despite the sharp decline in its;market share;after it lifted the zero-fee trading in March this year. The platform hosted 50% of all the spot trading last month, while its closest rival, OKX, was only able to receive a 7% share of the cake. The largest crypto exchange saw its market share;decrease to 47.84%;in April, retreating to 10-month lows. The figure accounted for a nearly 15% drop from the last 10 months' highest rates of 62% in February.
Brands should care:&;The three-year spot trading volume data also revealed that the crypto exchanges historically experienced brief declines in spot trading volumes last year right after May 2022 and November 2022 when the multi-billion dollar Terra;ecosystem;collapsed, and previously third-largest crypto exchange FTX filed for;bankruptcy, respectively.