Analysis: Cryptocurrency trading volume decreased by 20% in February due to concerns from investors over tariff threats

According to CoinDesk, due to concerns that US President Donald Trump's tariffs on Mexico, Canada, and other countries will suppress international trade, investors' demand for increased venture capital has decreased, resulting in a significant decline in cryptocurrency trading volume in February. The total volume of spot and derivative trading on centralized exchanges decreased by 21% to $7.2 trillion, the lowest level since October last year. In centralized exchanges, Binance maintains its position as the largest spot trading platform with a market share of 27%. Next are Crypto.com (8.1%) and Bybit (7.4%), with Coinbase (COIN) and MEXC Global ranking in the top five. Derivatives trading has also experienced a significant decline, with the largest institutional cryptocurrency trading platform CME recording its first decline in trading volume in five months. CME's trading volume decreased by 20% to $229 billion, Bitcoin futures activity decreased by 20% to $175 billion, and Ethereum futures decreased by 13% to $35.9 billion. The decline in trading volume coincided with the decrease in BTC CME annualized basis, which dropped to 4.08%, the lowest level since March 2023. Nevertheless, CME's market share in derivative exchanges has grown to a record high of 4.67%. This growth indicates that although retail trading activity has been weakening, Robinhood (HOOD) recently reported a 29% decrease in cryptocurrency trading volume in February, but institutional interest in the industry still exists. In addition, the total open interest contract volume of all trading pairs on the centralized exchange decreased by 30% to $78.8 billion, the lowest level since November 5th, reflecting the severe liquidation suffered during the recent downturn.