Wintermute’s Continued Growth in 2023
Despite the market downturn, Wintermute, a popular market maker and liquidity provider, experienced growth in all business verticals in 2023. In a recent report, the platform revealed that its over-the-counter (OTC) volume increased by over 400% throughout the year as more volumes moved off-exchanges.
Surge in OTC Trading Volume
In the first half of 2023, Wintermute’s OTC trading volume declined, but the number of individual trades remained stable. However, in the second half of the year, the platform saw a significant increase in unique trades, reaching 29 million. At the same time, Wintermute’s weekly OTC volume surpassed $2 billion.
Growth in OTC Volumes
Wintermute experienced substantial growth in trading activity during the second half of 2023. The number of trades increased more than sixfold, totaling over 29 million. Additionally, Wintermute recorded its highest OTC volume week, exceeding $2 billion. This marked a notable rise of over 20% compared to the first half of 2023.
Layer 1 and Layer 2 Trading Volumes
The OTC trading volumes for Layer 1 assets followed a similar trend to Wintermute’s overall OTC volumes. They declined by approximately half between H2 2022 and H1 2023 before experiencing a remarkable 350% surge in H2 2023. Within the Layer 1 ecosystem, Ethereum dominated with a 68% market share.
Layer 2 platforms had significantly less trading activity compared to Layer 1s. Polygon, Arbitrum, and Optimism Ecosystems were the leading platforms in terms of proportionate trading volume. Wintermute noted consistent growth in Layer 2s, with a substantial 160% increase from H2 2022 to H2 2023.
Strong DeFi Performance
Wintermute reported a sevenfold growth in nominal volumes in the DeFi category from H2 2022 to H2 2023. However, the market share decreased from 16% to 11%. Yield Farming assets were the most traded within DeFi, followed by Oracles, Lending, and DEX tokens.
Yield Farming assets maintained around 35% of DeFi volumes throughout the year. Oracle assets rebounded strongly after a slight drop, representing 26% of all traded DeFi category volumes in H2 2023. DEX assets saw a decrease in market share but had a significant increase in notional volumes traded. Lending-related assets gained an additional 10 percentage points in market share.
Hot Take: Wintermute’s Growth Amidst Challenges
Wintermute’s continued growth in all business verticals throughout 2023 demonstrates its resilience despite the market downturn. The platform experienced significant increases in OTC trading volume, particularly in the second half of the year. Additionally, Wintermute saw growth in both Layer 1 and Layer 2 trading volumes.
In the DeFi category, although Wintermute’s market share decreased, it reported substantial growth in nominal volumes. Yield Farming assets remained dominant, while Oracle assets and lending-related assets also performed well. Wintermute’s ability to thrive amidst challenges solidifies its position as a leading market maker and liquidity provider.
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