Centralized crypto exchange spot trading volume jumps 145% to $10T H1/24

Centralized crypto exchange spot trading volume jumps 145% to $10T H1/24

According to the latest report by CCData, the cryptocurrency market has seen a significant growth so far in 2024. 

The spot trading volume on centralized exchanges grew by 145% to $10.6 trillion during the first half of 2024. This growth demonstrates the resilience of this sub-sector driven by the resurgence in Bitcoin’s price following the approval of spot Bitcoin ETFs in the United States.

“This increase was mostly fuelled by Q1 2024, with March spot volumes recording an all-time high of $2.9tn,” the report noted adding that the volumes are expected to continue growing for the rest of the year “despite Q2 experiencing a minor decline of 29.7% compared to Q1 (as of the 18th of June).”

“The industry's robustness is further evidenced by improvements in the regulatory landscape and the overall quality of the markets. Below, we delve into major trends, recent updates, and the forward outlook.”

Spot volumes on centralized exchanges. Source: CCData
Spot volumes on centralized exchanges. Source: CCData

During the last six months, crypto exchanges Bitget, Crypto.com and Bybit achieved a new the highest growth in spot market share, increasing by 38.4%, 24.6%, and 22.2%, respectively, while other exchanges saw minor declines of 6.0%, like Coinbase.

CEXs spot market share change. Source: CCData
CEXs spot market share change. Source: CCData

This suggests shifting roles of various centralized exchanges as they take on new functions and responsibilities. As a result, the largest cryptocurrency exchange by trading volume Binance, continues to lose its market share as it fights various regulatory battles across the world. Binance’s spot market share has seen a minor increase of about 0.5% since January 2024.

The report highlighted that the shift has also been evident when analysing the exchange’s market quality, with Bitfinex managing to record the highest increase in 5% market depth with 89.7%.

“LMAX and OKX followed with a 54.8% and 32.3% increase among the analysed exchanges.”

In the decentralised exchange (DEX) market, the report says there has been a significant growth over the past year.

Since June 2023, the volume being traded on DEXs has grown 51%. While this pales in comparison to the 119% volume growth over the last 12 months that CEXs saw this year, it clearly demonstrates an uptick in the use of DEXs.

Monthly trading volume on major DEXs. Source: CCData
Monthly trading volume on major DEXs. Source: CCData

The chart above shows that the largest volumes were recorded by Raydium, Uniswap, and Jupiter which were doing $1.5 billion, $10.5 billion, and $0.8 billion respectively 12 months ago. Now they are doing $2.6 billion, $12.7 billion and $1.5 billion each - a considerable rise from their previous volumes.

“Additionally, as recently as March, total DEX trading volume almost reached its all-time high of $292bn, falling just shy of it with $266bn in trading volume.”

The report concludes by saying that as market conditions improve, it is expected the on-chain trading activity will surge. Ethereum is likely to remain a strong hub for on-chain activity, with the upcoming launch of spot Ethereum ETFs likely to spur further interest in the ecosystem.

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