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CEX Trading Volume Drops in April Following Months of Growth

The cryptocurrency market has witnessed a significant drop in trading volume on centralized exchanges in April, following three consecutive months of growth. According to blockchain data provider Kaiko, the trading volume on centralized exchanges has decreased after three months of consecutive growth.

The data reveals that the trading volume in April was nearly half of that in March, at around $500 billion. April marked the lowest trading volume of the year so far, while March had the highest.

Despite this, Kaiko noted that the cryptocurrency market is still significantly larger than before the 2020 price hike.

Data from blockchain analyst Lars0x also shows that the trading volume of legal tender spot trading has decreased by 43.8% to $400.5 billion in April. Lars0x noted that most of the decrease is due to Binance aggregating fees for BTC pairs. Binance remains the market leader with a dominance rate of 71.6%, according to their data.

Moreover, Binance’s 24-hour trading volume is around $10 billion, significantly larger than its closest competitor Coinbase with $1.1 billion, according to CoinGecko.

At the end of April, Binance’s Bitcoin balance increased by more than 50,000 BTC, equivalent to $1.5 billion, within a month. This move came ahead of the sell-off when BTC hit strong resistance at $30,000.

According to a report from Yahoo News, US-based cryptocurrency exchange Coinbase has seen a decrease in app downloads in recent months due to declining trading volume.

The drop in trading volume on centralized exchanges could be a result of the growing popularity of decentralized exchanges, which provide users with more control over their assets and do not require the trust of a centralized authority. It could also be due to regulatory concerns and uncertainties surrounding cryptocurrencies, leading to a decrease in investor confidence.

Overall, while the drop in trading volume on centralized exchanges may cause some concern, the cryptocurrency market as a whole is still growing and evolving. It will be interesting to see how this trend develops in the coming months and what impact it will have on the market as a whole.

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