CoinGecko’s 2023 Annual Crypto Industry Report: Key Highlights
CoinGecko has released its 2023 Annual Crypto Industry Report, providing insights into the current state of crypto exchanges, the growth of Bitcoin and Ethereum, NFT trading volume, and more.
Centralized Crypto Exchanges Dominate
The report reveals that the crypto market saw a $36.6 trillion trading volume in 2023, with a significant increase of +53.1% from Q3 to Q4. This growth was attributed to the bullish sentiment in anticipation of spot Bitcoin ETFs’ approval by the SEC.
Despite challenges faced by the market, such as FTX’s collapse and regulatory issues with Binance, the report shows an overall market recovery.
In December 2023, trading volume reached $4.3 trillion, the highest since March 2023. Centralized exchanges outperformed decentralized exchanges (DEX) throughout the year.
CEX vs. DEX Trading Volume Ratios
- In Q4, CEX to DEX spot trading volume ratio was around 91.5%.
- CEX to DEX derivatives trading volume ratio dropped to 97.3% from 98.5%.
- In 2023 overall, CEX to DEX spot ratio stood at 91.4%.
- CEX to DEX derivatives ratio was 98.1% in 2023.
Top Centralized Exchanges by Trading Volume
Binance, Upbit, OKX, Bybit, and Coinbase are among the top 10 centralized exchanges based on trading volume. Despite a decline in market share throughout 2023, Binance maintained its dominance with a 41% market share in November.
In Q4, the top 10 CEXes recorded $2.20 trillion in spot trading volume, representing a +98.1% increase QoQ.
However, the overall spot trading volume for the top 10 CEXes in 2023 declined by -23.4% compared to 2022.
Spot Decentralized Exchanges (DEX) Trading Volume in 2023
The top 10 DEXes recorded $205.3 billion in spot trading volume in Q4, indicating an +87.1% increase QoQ. Uniswap, Pancakeswap, Orca, Curve, and THORSwap were the leading DEXes in terms of spot trading volume.
Orca and THORSwap saw significant gains in Q4, with Orca experiencing a 1,079% increase and THORSwap seeing a surge of 422.4%.
Ethereum dominated DEX trading volume in Q4 with $99.3 billion, but its dominance dropped below 50% for the first time in November and December.
Hot Take: Crypto Market Shows Resilience and Growth
CoinGecko’s 2023 Annual Crypto Industry Report highlights the recovery and growth of the crypto market despite challenges faced throughout the year. Centralized exchanges remained dominant, outperforming decentralized exchanges (DEX). Binance maintained its position as a leading exchange despite a decline in market share. The report also showcases the significant gains made by DEXes like Orca and THORSwap. Ethereum continued to be the most traded cryptocurrency on DEX platforms but experienced a drop in dominance towards the end of 2023. Overall, the report demonstrates the resilience and potential of the crypto market for future growth.
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