Centralized Exchanges Experience a Resurgence in Spot Volumes
Amidst a challenging period for the crypto spot market, centralized exchanges and market makers faced difficulties due to low activity levels and the collapse of FTX. However, December 2023 brought about a shift in sentiment as centralized exchanges registered a significant rise in spot volume.
According to CCData’s latest Exchange Review report, spot trading activity increased by 34.0% in December, reaching $1.34 trillion. This marked the highest monthly spot trading volumes for the entire year of 2023 and the third consecutive monthly rise since June 2022.
Top-tier spot volumes saw a notable surge of 35.5% to $950 billion, while lower-tier spot volumes also experienced a significant increase of 30.5%, reaching $398 billion.
Binance Makes a Comeback
Despite facing legal issues and other setbacks in 2023, Binance witnessed a positive turnaround. In December, Binance emerged as the leading derivatives exchange by monthly volume, trading $1.58 trillion, reflecting a 25% increase from November.
Following Binance were OKX with $857 billion in trading volume (up 30%) and Bybit with $443 billion (up 18.1%). Meanwhile, Crypto.com and Coinbase were the best-performing derivatives exchanges, recording impressive increases of 94.9% and 68.6%, respectively.
Binance also saw an increase in its market share for the first time in ten months, reaching 32.5%. However, Upbit and Huobi experienced significant declines in market share during December.
Hot Take: Centralized Exchanges Show Resilience Despite Challenges
The crypto spot market faced difficulties in 2023, but centralized exchanges showcased resilience by experiencing a resurgence in spot volumes. This positive shift in sentiment can be attributed to the rise in trading activity, with December recording the highest monthly spot trading volumes of the year.
Binance’s comeback as the leading derivatives exchange further highlights the ability of centralized exchanges to adapt and thrive in challenging circumstances. Despite facing legal issues and other setbacks, Binance managed to increase its market share and trading volume, showcasing its strength in the market.
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