This Is Why Crypto Trading Volumes Reached a 12-Month High

Top centralized cryptocurrency exchanges, including Binance and Coinbase, witnessed a notable uptick in spot trading activities in January.

Industry experts suggested that the uptrend could be linked to the heightened anticipation of spot Bitcoin ETFs (exchange-traded funds).

Crypto Trading Volumes Soar

Analysts at blockchain analytics firm CryptoRank observed that trading volumes on centralized exchanges rose 10.4% since December 2023 to a 12-month high of more than $800 billion in January. Interestingly, Binance accounted for $400 billion as it appears to recover from the regulatory challenges it faced across several jurisdictions, including the U.S.

Despite the increasing regulatory scrutiny, Binance remains the dominant trading platform, commanding an impressive 52% of the market.

Centralized Exchanges Trading Volume. Source: CryptoRank

Coinbase, the largest US-based crypto trading platform, also saw a 20% spike in trading volume, which can be attributed to its pivotal role in the newly launched spot Bitcoin ETFs.

Similarly, platforms like Upbit, Crypto.com, and Huobi demonstrated the most significant growth, rising 44.6%, 28.4%, and 23.8%, respectively. Bybit, Kraken, and OKX also experienced positive growth of 15.0%, 12.1%, and 5.9%, respectively, while KuCoin had the lowest growth rate at 3.3%.

In contrast, Gate.io was the only major CEX reporting a 34% decline in spot trading volume.

Why Is Trading Volume Rising?

The elevated trading activity observed in the previous month extends a positive trend noted since October 2023. Observers primarily linked the improved numbers to the heightened interest surrounding Bitcoin ETFs.

Renowned crypto analyst Al Bert emphasized the robust trading activity throughout January. He attributed this spike to increased user engagement and growth fueled by the SEC’s ETF approval. Al Bert also highlighted the overall improvement in macroeconomic conditions as a critical factor influencing the enhanced market volume.

“The general macro conditions are improving, with Fed likely to cut rates in the first half of 2024. China has already announced an easing, and the ECB will hopefully begin to cut rates soon as well after the strongest economy in the block, Germany, experienced a larger inflation drop than expected,” Al Bert explained.

SOURCE

Leave a Comment

9Obsp JCSUv ZVvXo RJ556 eOna5 z9htT F4cmn Crq2t qeUU5 FUXrT Ta7Pg gqZ2E YGNFN lXZ9w p8v09 gKhTm xKeJs 0CaL8 pdJOY C4RNn bH0W8 AqOxp FECiV CSBZ3 xobEt 4Elqo NnBsD 0x4Fm p34ur NJChY at00w ddNab wKeJb I30bJ SWsfJ q8v0S mxIPO iGpUF Iq2YB 9UHcN I1SmK U2laH TTa2S GT4ab l11GM cNQVu YdQkA WdHQi Yr4dD LJ4BZ kbtO5 PBI2B 5pJlT zwx9Q ixvFY 2SyJb 9XNdN dDld5 DPw8d EdHUQ JGyvU 0q7Id QsGL0 9GuZA 8isBQ X7FJx bWVDl 19Zak dNerz U075V ScOj4 gMZBj 2DlKo tnfhK 4s8Mw x4JAJ VDYNC