Crypto trading volumes took a sharp dive in February due to concerns over President Donald Trump’s tariffs on Mexico, Canada, and other countries potentially hindering international trade, leading investors to shy away from risky investments.
According to CoinDesk Data’s latest Exchange Review, combined spot and derivatives trading volume on centralized exchanges plummeted by 21% to $7.2 trillion, reaching its lowest level since October.
Since November, the Trump administration has been threatening to impose tariffs on various trading partners like China and the European Union in response to what it perceives as unfair trade practices against the U.S. in different industries, as reported by CBC News and BBC News.
Among centralized exchanges, Binance remained the largest spot trading platform with a 27% market share, followed by Crypto.com (8.1%) and Bybit (7.4%), with Coinbase (COIN) and MEXC Global rounding out the top five.
Monthly spot and derivatives volumes on centralized exchanges as of Feb. 2025 (CoinDesk Data)
Derivatives trading also experienced a significant decline, with CME, the largest institutional crypto trading venue, witnessing its first volume drop in five months. CME’s trading volume decreased by 20% to $229 billion, with bitcoin futures activity sliding by 20% to $175 billion and ether futures falling by 13% to $35.9 billion.
This decline in trading coincided with a drop in the BTC CME annualized basis, which fell to 4.08%, marking its lowest level since March 2023. Nonetheless, CME’s market share among derivatives exchanges reached a record 4.67%.
Despite retail trading activity showing a decline, with Robinhood (HOOD) reporting a 29% drop in crypto trading volume in February, institutional interest in the industry remains strong.
The total open interest across all trading pairs on centralized exchanges contracted by 30% to $78.8 billion, hitting its lowest point since November 5, indicating the significant liquidations experienced during the recent drawdown.
