A recent report from Bybit’s Institutional Report 2024 has highlighted a significant increase in trading volumes across major centralized cryptocurrency exchanges (CEXs) such as Binance, OKX, and Bybit, with growth rates surpassing the industry average since late 2023.
A Sharp Increase in Trading Volumes
From October 2023 to March 2024, CEXs witnessed a dramatic rise in their trading activities. OKX led with a 278% increase in its 30-day volumes, closely followed by Bybit, which saw a 264% rise, and Binance with a 239% increase. This growth outstripped the overall industry average of 255%, as noted by a Bybit spokesperson.
Factors Driving the Growth
The surge in CEX trading volumes is primarily attributed to the recent price rallies of major cryptocurrencies like Bitcoin and Ether. These rallies were spurred by the approval of spot Bitcoin BTC exchange-traded funds (ETFs) in the U.S., significantly impacting investor interest and market activity.
Comparison with Decentralized Exchanges
Despite the robust growth in centralized exchanges, the expansion has not surpassed that of decentralized exchanges (DEXs). For instance, Uniswap v3, a major DEX, recorded an impressive volume increase of 320%, showcasing the growing investor preference for decentralized financial solutions.
Derivatives Market Analysis
The derivatives segment of cryptocurrency trading also reflected growth, albeit at a slower pace. Binance, the leading player in this space, recorded a 66% increase in trading volumes over the same period. The derivatives market is largely dominated by a few key players, including Binance, OKX, and Bybit, highlighting their significant influence.
Market Share Insights
Despite OKX’s rapid growth, Binance continues to hold the largest market share, accounting for at least 58% of the total spot trading volume. By contrast, Bybit has emerged as the second-largest exchange by market share, with 9.6%, closely followed by OKX at 9%.
