The monthly trading volume of centralized cryptocurrency exchanges hit a fresh all-time high of over $2 trillion in May, with Changpeng Zhao’s Binance leading the charge with nearly $1.5 trillion in trading volume, followed by Coinbase, reports TheBlock on May 31, 2021.
Crypto Exchange Volume Hits Fresh ATH
2021 is proving to be an excellent year for the top centralized exchanges, as their trading volumes have been reaching new ATHs since the beginning of the year.
According to The Block Legitimate Index, which gathers data from established exchange platforms with a track record of reporting accurate trading data. centralized crypto exchanges saw their combined trading volume surpass $2 trillion in the month of May, making it the fourth month in a row that volume has exceeded $1 trillion.
Specifically, Binance, the world’s number one crypto exchange platform, occupies the number one spot for crypto-to-crypto exchanges. Binance saw a massive $1.5 trillion in trading volume in the month of May, while Coinbase, a U.S-based exchange that supports fiat-to-crypto transactions, managed nearly $200 billion in trading volume in the same period.
Crypto Gradually Coming of Age?
For context, May’s trading volume of legitimate crypto exchanges eclipses their April performance by over $700 billion, as the bitcoin trading venues generated just $1.3 trillion in the previous month.
While bitcoin and other cryptocurrencies are often criticized for being too volatile, it’s this same volatility that makes them quite lucrative as investment vehicles.
Despite the recent market correction that saw the price of BTC crash to $30k, with altcoins also expressing serious bloodbaths, the continuous increase in the trading volume of centralized exchanges goes a long way to show that traders are still very much interested in these digital currencies and things can only get better.
Notably, decentralized exchanges are not doing too badly themselves, aside from the recent increase in flash loan attacks on a number of automated market makers (AMMs) and yield farming protocols.
At press time, the global decentralized finance (DeFi) space has a combined $107.86 billion in total value locked (TVL), according to DeFi Llama.
On the regulatory front, bitcoin () and other cryptocurrencies seem to be winning the war in India, as the Reserve Bank of India (RBI) has given financial institutions under its purview the go-ahead to start servicing crypto-related businesses, provided they put in place proper KYC and AML measures.