CoinGecko’s 2023 Annual Crypto Industry Report has been released. It covers crypto exchanges and their current state, Bitcoin’s +155.2% and Ethereum’s +90.5% growth, analyzing NFT trading volume throughout the year, and more.
Among the report’s highlights is the comprehensive review of the crypto trading volume in 2023 through the performance of centralized crypto exchanges (CEX) and decentralized exchanges (DEX).
Centralized Crypto Exchanges Dominated
Crypto saw a $36.6 trillion trading volume in 2023, with a volume increase of +53.1% from Q3 ($6.7 trillion) to Q4 ($10.3 T). The Q4 increase marked the first quarter-on-quarter (QoQ) growth of 2023 and could be attributed to the “growing bullish sentiment” in the crypto market due to the anticipation of spot Bitcoin ETFs’ approval by the SEC.
Despite the market’s challenges, such as the aftermath of FTX’s collapse, the worldwide banking crisis, or Binance’s regulatory difficulties in 2023, the data presented in the report shows an overall market recovery.
In December 2023, the trading volume increased sharply to $4.3 trillion, a volume not seen since March 2023. Overall 2023, centralized exchanges dominated the year despite the challenges, especially when compared to decentralized exchanges (DEX). The report details:
- CEXto DEX spot trading volume ratio hovered around 91.5% in Q4.
- CEX to DEX derivatives trading volume ratio dropped to 97.3% from 98.5%.
- CEX to DEX spot ratio stood at 91.4% in 2023.
- CEX to DEX derivatives ratio was 98.1% in 2023.
Binance, Upbit, OKX, Bybit, and Coinbase are among the Top 10 centralized exchanges by trading volume. Binance managed to dominate the list despite dropping to a yearly low market share of 41% in November, following a continued loss throughout 2023.
There was a +98.1% increase QoQ, after the top 10 CEXes recorded $2.20 trillion in spot trading volume in 2023 Q4. Previously, the trading volume had failed to reach above $2 trillion for two consecutive quarters.
Altogether, the top 10 CEXes recorded $7.2 trillion in spot trading volume in 2023 compared to $9.4 trillion in 2022, representing a -23.4% year-on-year (YoY) decline.
Monthly Top Cryptocurrencies Exchanges Trading Volumen, 2023. Source: CoingGecko.com
Deep Dive Into The Spot Decentralized Exchanges (DEX) Trading Volume In 2023
The Top 10 DEXes recorded $205.3 billion in spot trading volume in 2023 Q4, indicating a +87.1% Total Trading Volume Increase QoQ….
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