The cryptocurrency market experienced significant shifts in June 2020, with trading volumes declining across both spot and derivatives markets. Despite the downturn, certain segments—particularly institutional offerings like options—showed resilience and even growth. This report provides a comprehensive analysis of key trends, exchange performance, and market dynamics based on data from CryptoCompare.
Market Overview: A Sharp Decline in Trading Activity
June 2020 marked one of the most notable drops in cryptocurrency trading volume for the year. Total spot trading volume fell sharply, with top-tier exchanges recording $177 billion—a 36% drop from May—and lower-tier exchanges seeing an even steeper decline of 53%, down to $466 billion.
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Daily spot volume dropped to roughly half of May’s average, signaling reduced market participation and investor caution. This broad-based slowdown affected nearly all major platforms, though the impact varied by exchange type and business model.
Derivatives Market: Lowest Volume of 2020
The derivatives market also faced significant contraction. Total derivatives trading volume declined by 35.7% month-over-month, reaching $393 billion—the lowest monthly figure of 2020 so far. In comparison, total spot volume dropped by **49.3%**, settling at $642.6 billion.
Despite the decline, derivatives' market share increased—from 32% in May to 37% in June—due to a relatively smaller drop compared to spot markets. This suggests that while overall activity slowed, more sophisticated traders remained active in leveraged products.
Huobi retained its position as the largest derivatives exchange in June, with $122.4 billion in volume (down 38.3%). OKEx followed with $106.9 billion (–30.4%), and Binance recorded $85.9 billion (–34.2%). BitMEX saw the largest decline at **–50.3%**, dropping to $51.6 billion.
The highest daily derivatives volume occurred on June 1, reaching $23.8 billion—just over half of April’s peak ($39 billion on April 30) and about 32% of May’s high ($35 billion on May 10).
Institutional Strength: CME Options Hit Record Highs
While retail-driven exchanges saw declining volumes, institutional platforms demonstrated resilience. The Chicago Mercantile Exchange (CME) reported a record-breaking performance in options trading.
Total CME options volume surged by 41%, reaching 8,444 contracts in June, up from 5,986 in May. Although daily highs didn't break records—peaking at 1,061 contracts on June 19—the consistent growth reflects rising institutional interest in regulated crypto derivatives.
In contrast, CME futures volume declined by 23%, with only 128,258 contracts traded in June. The highest daily futures volume was 16,101 contracts on June 2, well below May’s peak of 21,001.
CME’s total trading value dropped by 16.6% to $6.7 billion, outperforming most other derivatives exchanges amid the broader market slump.
👉 Explore how regulated platforms are shaping the future of crypto trading.
Exchange Benchmark Analysis: Quality Over Volume
CryptoCompare’s Exchange Benchmark evaluates platforms based on transparency, operational quality, regulatory compliance, data provision, and anti-market manipulation capabilities. The goal is to identify exchanges that promote fair, secure, and efficient markets—especially important during volatile periods.
Top-tier exchanges—selected through this rigorous methodology—saw their combined spot volume fall by 36% in June. The highest single-day volume among these platforms reached $9.26 billion.
Although trading activity slowed across the board, the benchmark highlights that higher-quality exchanges continue to command trust and market share, even in downturns.
Spot Market Leaders: Binance and OKEx Dominate
Despite the overall decline, Binance and OKEx maintained their dominance in the spot market. Together, they accounted for approximately 75% of total spot volume among the top 15 exchanges.
- Binance: $41.8 billion in June (–19.6%)
- OKEx: $40.6 billion (–29.0%)
- Coinbase: $6.86 billion (–38.5%)
Binance remained the largest spot exchange globally, demonstrating strong user retention despite market conditions.
This concentration underscores the growing centralization of trading activity among a few major players—driven by liquidity, product diversity, and global reach.
BTC vs Fiat & Stablecoins: USDT Still Dominant
Bitcoin trading pairs showed significant declines across all major fiat and stablecoin markets:
- BTC/USDT: Volume dropped from 14.9 million BTC in May to 6.47 million BTC in June
- BTC/USD: Fell to 1.12 million BTC (–44%)
- BTC/JPY: Down to 920,000 BTC (–38%)
- BTC/EUR: –45%
- BTC/KRW: –50%
Stablecoin pairs also saw sharp declines:
- BTC/USDC: 76,900 BTC traded (–57%)
- BTC/PAX: 13,500 BTC (–54%)
Despite the downturn, BTC/USDT remained dominant, accounting for 69% of all BTC trades against fiat or stablecoins—down slightly from 75% in May.
This continued reliance on Tether highlights its entrenched role in global crypto liquidity, especially in regions with limited access to traditional banking channels.
Trading Models: Fee-Based vs Transaction Fee Mining
Exchange business models played a role in how platforms weathered the downturn:
- Fee-charging exchanges accounted for 76% of total spot volume ($455 billion), down 48% from May.
- Platforms using Transaction Fee Mining (TFM) captured less than 23%, trading $141 billion—a 45% drop.
While both models suffered losses, fee-based platforms maintained stronger market positions, likely due to greater perceived legitimacy and long-term sustainability.
FAQ: Frequently Asked Questions
What caused the drop in crypto trading volume in June 2020?
A combination of market consolidation after earlier volatility, reduced speculative activity, and macroeconomic uncertainty contributed to lower trading volumes. Additionally, fewer major price swings reduced incentive for short-term traders.
Why did CME options volume increase while futures declined?
Institutional investors often use options for hedging rather than speculation. The rise in CME options suggests growing adoption by traditional finance players seeking risk management tools amid uncertainty.
Are declining volumes a sign of weakening crypto market health?
Not necessarily. Lower volumes can indicate market maturation—shifting from hyper-speculation to more stable, long-term investment patterns. Temporary declines don’t reflect long-term adoption trends.
Why do Binance and OKEx dominate despite regulatory scrutiny?
They offer deep liquidity, diverse trading pairs, advanced tools, and global accessibility—key factors for both retail and professional traders. Their scale allows them to maintain dominance even under pressure.
Is USDT losing ground as a primary Bitcoin trading pair?
While its relative share dipped slightly—from 75% to 69%—USDT remains overwhelmingly dominant. No other stablecoin or fiat pair comes close in terms of liquidity or usage.
What does rising derivatives market share mean?
Even as overall volume fell, derivatives held up better than spot markets. This indicates that experienced traders are increasingly using leverage and hedging instruments—a sign of market sophistication.
Final Thoughts: Resilience Amid Slowdown
June 2020 was a period of retrenchment for the crypto market. Volumes declined across spot and derivatives segments, reflecting reduced volatility and speculative momentum. However, key developments—including record institutional options activity at CME and sustained leadership from top-tier exchanges—signal underlying strength.
As the market evolves, platforms that prioritize transparency, security, and regulatory compliance will likely gain further traction—especially among institutional participants.
👉 See how leading exchanges are adapting to new market realities.
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