CCData Offers Insights into the Crypto Exchange Market
CCData, a global leader in digital asset data, has released the January 2024 edition of its Exchange Review report, providing an in-depth analysis of exchange volumes, crypto derivatives trading, market segmentation, and the dynamics between crypto-to-crypto versus fiat-to-crypto volumes.
Decline in Combined Spot and Derivatives Trading Volume
At the start of 2024, there was a slight decline in the combined spot and derivatives trading volume on centralized exchanges, marking the first decrease in four months. The total trading volume dipped by 0.72% to $4.65 trillion, following a period of heightened trading activity triggered by a sell-off and the deleveraging of positions by traders.
Increase in Spot Trading Volumes
In contrast to the overall decline, January saw a 4.45% increase in spot trading volumes on centralized exchanges, reaching $1.40 trillion. This marks the fourth consecutive month of rising monthly spot trading volumes, a trend likely sparked by the approval of spot Bitcoin ETFs in the U.S.
Binance Remains Largest Spot Trading Exchange
Binance maintained its position as the largest spot trading exchange, with volumes rising by 2.73% to $437 billion, capturing a market share of 31.3%. CoinBase also saw a rise in market share for the third consecutive month.
Decline in Derivatives Trading Volume
Derivatives trading volume witnessed a 2.79% decline to $3.25 trillion, alongside a decrease in market share for the fourth consecutive month, settling at 69.9%. This indicates a move by traders to deleverage their positions following the conclusion of the ETF narrative.
Increase in ETH Futures Trading Volume
Following the focus on Bitcoin, there was a brief shift towards Ethereum, particularly in anticipation of a possible ETH ETF approval. The trading volume for ETH futures on the CME rose by 15.6%, with ETH options trading volume also seeing a significant increase.
Hot Take
The January 2024 edition of CCData’s Exchange Review offers valuable insights into the trends and developments in the cryptocurrency exchange market, shedding light on changes in trading volumes, market shares, and the impact of regulatory decisions on different cryptocurrency assets.
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