Despite historically low returns in September, Bitcoin (BTC) ended the past month exceptionally well. Unfortunately, the same cannot be said for major centralized cryptocurrency exchanges whose spot trading volumes have declined for another consecutive month.

According to data gathered by Finance Magnates Intelligence, the total turnover for the TOP 10 exchanges shrank by nearly $90 billion, or 25%. The decline was even more severe on a yearly scale, amounting to 68%. So far, it was the worst month in terms of volumes since the beginning of 2023.

Second Month of Strong Volume Declines for Leading Crypto Exchanges

The total volume of the ten largest crypto exchanges fell to $270.89 billion in September 2023. A month earlier, this figure stood at $359.59 billion. The declines occurred despite the rebound in Bitcoin prices and leading cryptocurrency assets over the past month. When compared to the previous year, the depreciation is even more severe. In September 2022, the total volume for these same exchanges was $855.86 billion, 68% higher than the current value.

The declines in September continue the depreciation observed in August. A month ago, Finance Magnates reported that volumes shrank 13% month-over-month (MoM) from $412.75 billion reported in July 2022 and 50% year-over-year (YoY). Binance retained its dominant position from a market share perspective, but its total share among the top 10 exchanges fell from 53% to 48% in September 2023. Upbit remained in second place with its share increasing from 9% to 14%, followed by Huobi with a slight decline in its share from 9% to 8%.

Upbit Grows Alone, KuCoin Loses the Most

Looking at the performance of individual cryptocurrency exchanges, Upbit was the only one whose volumes jumped MoM. The value increased 15% from $31.8 billion reported in August to $36.69 billion last month.

However, this doesn't change the fact that Upbit's annual volume shrank 27%. On the opposite end was KuCoin, whose monthly volumes shrank 34%, from $10.09 billion in August to $6.61 billion in September. The YoY decline reached 84%.

The fluctuations in trading volumes for individual exchanges have been summarized in a chart, with detailed information provided below:

• Upbit: Monthly volumes increased 15% and yearly decreased 27% to $36.69 billion.
• ByBit: Monthly volumes fell 15% and yearly boosted 17% to $19.8 billion.
• Kraken: Monthly volumes dropped 17% and yearly 63% to $11.47 billion.
• Bitstamp: Monthly volumes diminished 19% and yearly 44% to $3.19 billion.
• Bitfinex: Monthly volumes dwindled 19% and yearly 86% to $2.49 billion.
• Coinbase: Monthly volumes shrank 23% and yearly 58% to $20.42 billion.
• OKX: Monthly volumes lessened 25% and yearly 70% to $17.64 billion.
• Huobi: Monthly volumes lowered 28% and yearly 3% to $22.45 billion.
• Binance: Monthly volumes reduced 32% and yearly 77% to $130.13 billion.
• KuCoin: Monthly volumes decreased 34% and yearly 84% to $6.61 billion.

Lowest Volumes in 2023 Despite Pricier Bitcoin

Despite several positive changes in the cryptocurrency industry that occurred in September, monthly volumes on major crypto exchanges reached their lowest levels in 2023. Bitcoin rebounded 4% during this time and returned to above key support levels, but regulatory uncertainty in various parts of the world has made users increasingly reluctant to trade cryptocurrencies .

This problem of lower volumes is not limited to cryptocurrencies. It is also noticeable in the forex markets, as evidenced by the September report from Euronext FX. For institutions, volumes slipped from $518 billion to $503 billion. Additionally, the Japanese platform Click365 recorded a decline of 17% in FX volumes MoM.

The crypto industry is certainly not helped by regulatory uncertainty. Lawsuits from the US Securities and Exchange Commission against Coinbase and Binance (the latter's growing problems with finding a place in Europe) and tightening cryptocurrency regulations have reduced interest in the sector. This applies to both retail and institutional customers.

However, October could bring a reversal of this unfavorable trend. This is the month when Bitcoin usually grows the strongest throughout the year. If BTC breaks the current consolidation and moves towards $30,000, it will undoubtedly encourage retail investors to make new purchases and boost exchange volumes.