Crypto Trading Volumes Fell 20% in February Amid Investor Concerns Over Tariff Threats

Spot and derivatives trading dropped to a four-month low as macroeconomic concerns dampened investor sentiment.

Key Points to Note:

• Centralized exchange trading volumes decreased by 21% last month, totaling $7.2 trillion.
• CME’s trading volumes fell for the first time in five months, although its market share reached an all-time high.
• Open interest on centralized exchanges dropped to its lowest level since November.

Crypto trading volumes saw a significant decline in February as worries over President Donald Trump's tariffs on Mexico, Canada, and other nations dampened investor appetite for riskier investments.

Combined spot and derivatives trading volume on centralized exchanges dropped 21% to $7.2 trillion, marking the lowest level since October, according to the latest Exchange Review.

Since November, the Trump administration has threatened to impose tariffs on trading partners, including China and the European Union, in response to what it views as unfair trade practices against the U.S. across various industries.

Among centralized exchanges, Binance retained its position as the largest spot trading platform with a 27% market share, followed by Crypto.com (8.1%) and Bybit (7.4%). Coinbase (COIN) and MEXC Global rounded out the top five.

Derivatives trading also experienced a notable decline, with CME — the largest institutional crypto trading venue — reporting its first volume drop in five months. CME’s trading volume decreased by 20% to $229 billion, with bitcoin futures activity dropping 20% to $175 billion and ether futures falling 13% to $35.9 billion.

The decline in trading coincided with a drop in the BTC CME annualized basis, which fell to 4.08%, its lowest level since March 2023. Despite this, CME’s market share among derivatives exchanges rose to a record 4.67%.

This increase suggests that while retail trading activity has been declining, with Robinhood (HOOD) recently reporting a 29% drop in crypto trading volume in February, institutional interest in the industry remains strong.

Total open interest across all trading pairs on centralized exchanges fell 30% to $78.8 billion, the lowest level since November 5, reflecting the heavy liquidations during the recent market downturn.