A recent report reveals that trading volumes on global centralized cryptocurrency exchanges (CEX) such as Binance have experienced a significant surge since late last year.
According to the Bybit Institutional Report 2024, many CEXs have tripled their monthly trading volumes between October 2023 and March 2024.
The report, released on April 18, shows that OKX saw a surge of up to 278% in its 30-day volumes since last October, closely followed by Binance with a 239% increase. Bybit exchange also experienced remarkable growth, adding 264% to its volumes.
All three exchanges have exceeded the industry’s average growth rate of 255%, as confirmed by a spokesperson from Bybit.
Coinbase, a U.S.-based exchange, saw its volumes increase by 193%, slightly below the average growth rate.
Bybit attributes the substantial growth in CEX volumes to the price rallies of Bitcoin (BTC) and Ether (ETH), which followed the approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S.
To accurately demonstrate volume growth and market share changes among CEXs, Bybit analysts compared trading data from October 2023 to March 2024, using 30-day volumes to eliminate daily fluctuations.
Although OKX outpaced Binance in terms of growth speed during the analyzed period, Binance remains the largest cryptocurrency exchange, accounting for at least 58% of the total spot trading volume.
According to Bybit’s data, Bybit is positioned as the second-largest exchange by market share, representing 9.6% of the market as of March 2023. Rival exchange OKX accounted for approximately 9% of the total crypto trading volumes.
When comparing the growth trend of CEXs to decentralized exchanges (DEX), Bybit data reveals that major DEX Uniswap v3 experienced a 320% increase in volumes, surpassing the growth rate of CEXs.
Derivatives CEXs also saw a slight increase in 30-day trading volumes, with Binance, the leading derivatives player, adding around 66% over the period.
The report emphasizes that the derivatives market for CEXs is predominantly dominated by Binance, OKX, and Bybit.
In other news, the founder of Synthetix, a decentralized finance (DeFi) platform, argues that it is DeFi itself that needs improvement, not the market as a whole.