• According to the latest report by CoinGecko, spot trading volume across the top 10 crypto exchanges was recorded to be at $2.8 trillion for 2023 Q1, increasing by more than 18% from 2022 Q4.
• DEXs witnessed their popularity exceed that of CEXs by approximately two times during the first quarter of 2023.
• Binance dominated the spot CEX raking in a market share of 62% in March 2023.
Crypto Spot Trading Volume Reaches $2.8T in Q1 2023: CoinGecko
Monthly Trading Volume on Rise
Bitcoin has shown immense resilience this year and while overall rally hasn’t been smooth sailing per se, it holds significance as it came against the backdrop of banking scandal and represented a shift in investor sentiment towards viewing Bitcoin as a hedge against banks. Monthly trading volume was also on the rise since $0.5 trillion lows in December 2022 but is yet to hit an average of $1 trillion, which was last seen in first half of 2022.
DEXs Outpace CEXs
Regulators across the world ramped up their crackdown on centralized crypto exchanges (CEXs). Market players rushed to the decentralized exchanges (DEXs), prompting substantial growth. As such, DEXs managed to outpace CEX’s quarterly growth with 33.4%, versus 16.9% for CEXs during first quarter of 2023. However, ratio of CEX : DEX trading volume remained above 90% throughout same period.
Binance Dominates Spot CEX
Binance dominated spot CEX raking in market share of 62% in March 2023, even after its launch of Binance Smart Chain (BSC) fueled further competition among major players like Huobi and OKEx who also launched their own smart contracts platforms earlier this year namely Huobi ECO Chain (HECO) and OKExChain respectively.
Investor Sentiment Shifted Towards Bitcoin
The increase signals renewed bullishness in market as investor sentiment shifted towards viewing Bitcoin as a hedge against banks amidst growing concern about traditional financial institutions being unable to protect investors from risk associated with economic crisis or inflationary pressures that could be caused due to government monetary policies or other factors beyond control of any individual institution or group thereof operating within global financial system today .
The report estimated that DEXs grew 33.4%, versus 16.9% for CEXs in the first quarter of 2023 while Binance dominated spot exchange with 62%. The increase signals renewed bullishness among investors who are now looking at Bitcoin as an alternative investment option against traditional financial institutions amid growing concerns over risks associated with economic crises or inflationary pressures caused due to government policies or other factors beyond control