CoinGecko Annual Crypto Industry Report Highlights
CoinGecko has released its Annual Crypto Industry Report, which highlights the significant growth of Bitcoin (BTC) in 2023, mainly attributed to the approval of ETFs early in 2024.
Total Crypto Market Increase and Trading Volume Decrease
The report reveals that the total crypto market experienced a 108% increase in 2023, amounting to $869 billion. However, the daily trading volume saw a decrease of 31.6% from the previous year, settling at $58.9 billion.
Bitcoin’s Price Performance and Current Status
Bitcoin’s price surged by 72.4% in Q1 and had another spike in the second quarter before retracting by 11.5% in Q3. Towards the end of the year, BTC reached a yearly high of $44,004. Currently, it is valued at $42,592, representing a 6.2% decline in the past week.
Ethereum’s Growth and Trading Volume Uptick
Ethereum (ETH) also performed well in 2023 with a growth rate of 91%. It closed at $2,294, with its highest returns occurring in Q1. The average daily trading volume remained stable throughout the year but witnessed an increase from $7.2 billion to $14.4 billion in Q4.
Record-breaking Trading Volume and Market Sentiment Shift
The cryptocurrency market reported a total trading volume of $36.6 trillion in 2023. In Q4 alone, the volume surged to $10.3 trillion from $6.7 trillion in Q3, marking a gain of 53.1%. This growth was primarily driven by a bullish shift in market sentiment, fueled by the anticipation of Bitcoin ETFs.
Continued Dominance of Centralized Exchanges
Despite challenges faced by FTX and regulatory hurdles encountered by Binance, centralized exchanges (CEXs) maintained their dominance in trading volume. The CEX/DEX spot ratio reached 91.4%.
Hot Take: CoinGecko Report Highlights Bitcoin’s ETF Impact on Market Growth
The CoinGecko Annual Crypto Industry Report highlights the significant impact of Bitcoin ETFs on the cryptocurrency market’s growth in 2023. Bitcoin experienced major price surges throughout the year, reaching a yearly high not seen since April 2022. Additionally, Ethereum showcased strong growth and an uptick in trading volume in Q4. The overall trading volume for cryptocurrencies reached record-breaking numbers, attributed to a positive market sentiment driven by the anticipation of Bitcoin ETFs. Despite challenges faced by some exchanges, centralized exchanges remained dominant in trading volume.
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