Trading volumes at major cryptocurrency exchanges fell by more than 40% in June. Chinese crackdown on crypto-mining and ‘lower volatility’ are the major contributors to the slump, according to London-based CryptoCompare’s data.
Trading activity across all spot markets fell considerably compared to May. As per the report, A daily volume maximum of $138.23 bn was traded on 22nd June, down 42.3% from the intra-month high in May. Derivatives volumes decreased by 40.7% in June to $3.2 tn. Total spot volumes decreased by 42.7% to $2.7 tn.
Bitcoin fell more than 6% last month touching the lowest rate since January. The low follows a heavy 35% fall in May.
Despite its regulatory struggles across the world, Binance maintained its top spot by volume. Its trade volume fell down by 56% to $668 bn.
Chinese crackdown on Crypto-Mining
In May, China started cracking down on crypto-mining and trading in an attempt to reduce financial risks. The effort also underlines the Chinese commitment to achieve carbon neutrality by 2060, and combat speculative crypto trading.
China has also blocked several crypto-related social media accounts and prohibited banks and payment companies to provide cryptocurrency services. In the second week of June, 11 Chinese police arrested 1100 people involved in money laundering via cryptocurrency.