Trading volume on the largest crypto exchanges fell 16% in a year

What’s new? The trading volume on the 10 largest centralized exchanges (CEXs), whose combined market share exceeds 95%, decreased by 16% to $34,26 trillion by the end of 2023, experts from research company TokenInsight write in a new report. Binance’s share fell from 54,2% to 48,7%, and the exchange still maintains its dominant position. In contrast, OKX and Bybit platforms showed the most significant growth, increasing market shares by 4,3% and 2,2%, respectively.

TokenInsight’s report

What else is known? According to TokenInsight, Binance’s share has fallen below 50% as a result of the elimination of zero trading fees on some bitcoin pairs, as well as the filing of a lawsuit by the US Securities and Exchange Commission (SEC) for trading unregistered shares.

After the exchange’s founder Changpeng Zhao voluntarily stepped down as CEO as part of an agreement with the US Department of Justice, its share fell to 32% at one point but began to recover a short time later. This fact indicates that traders still retain confidence in Binance, despite the SEC’s accusations of misuse of user funds.

As for OKX and Bybit, their shares rose to 16,1% and 12,3% respectively by the end of the year. Also in the top ten are Bitget (10,4%), Crypto.com (2,6%), HTX (2,5%), Gate (2,5%), KuCoin (2,2%), Coinbase (1,8%), Kraken (0,6%), and Bitfinex (0,2%).

Notably, derivatives accounted for more than 90% of trading volume on OKX, Bybit, and Bitget. For Binance and KuCoin, this share ranges from 70% to 80%.

In terms of the number of tokens available for trading, Gate leads by a significant margin: it listed 362 assets in 2023 alone, bringing the total to 1871.

USDT’s share in the total volume of stablecoins reached 71%

The figure grew by 21% over 2023

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Speaking about decentralized exchanges (DEXs), TokenInsight experts noted that their share in the total trading volume was 2,83%, having not changed significantly compared to the previous reporting period. The aggregate figure of the top 10 DEXs amounted to $977,5 billion. Solana blockchain-based platforms Orca and Raydium recorded the largest increase in market shares, mainly due to a sharp rise in the native token SOL at the end of the year.

Earlier, CoinShares reported a 90% year-over-year growth in its bitcoin mining network. And CoinGecko estimated that 59% of cryptocurrency projects have been closed since 2014.