CoinGecko’s annual Crypto Industry Report 2023 has been released. It covers crypto exchanges and their current state, Bitcoin’s +155.2% and Ethereum’s +90.5% growth, analyzes NFT trading volume over the year, and more.
Below the highlights of the report is the comprehensive assessment of crypto trading volume in 2023 by the performance of centralized crypto exchanges (CEX) and decentralized exchanges (DEX).
Centralized crypto exchanges dominated
Crypto saw a trading volume of $36.6 trillion in 2023, with a volume increase of +53.1% between the third quarter ($6.7 trillion) and the fourth quarter ($10.3 trillion). The fourth-quarter surge marked the first quarter-over-quarter (QoQ) growth of 2023 and could be attributed to “growing bullish sentiment” in the crypto market due to anticipation of the SEC’s approval of spot Bitcoin ETFs .
Despite the market challenges, such as the aftermath of the collapse of FTX, the global banking crisis or Binance’s regulatory issues in 2023, the data in the report shows an overall market recovery.
In December 2023, trading volume rose sharply to $4.3 trillion, a volume not seen since March 2023. Overall, centralized exchanges dominated the year despite challenges, especially compared to decentralized exchanges (DEX). The report details:
- The CEX/DEX spot trading volume ratio hovered around 91.5% in the fourth quarter.
- The ratio of trading volume in CEX to DEX derivatives fell from 98.5% to 97.3%.
- The spot ratio CEX to DEX was 91.4% in 2023.
- The ratio of CEX to DEX derivatives was 98.1% in 2023.
Binance, Upbit, OKX, Bybit and Coinbase are among the top 10 centralized exchanges in terms of trading volume. Binance managed to dominate the list despite falling to an annual low 41% market share in November after a sustained loss through 2023.
There was a +98.1% quarter-over-quarter increase after the top 10 CEXs recorded trading volume of $2.20 trillion in Q4 2023. Previously, trading volume had not exceeded $2 trillion for two consecutive quarters.
Overall, the top 10 CEXs recorded trading volume of $7.2 trillion in 2023, compared to $9.4 trillion in 2022, representing a decline of -23.4% year-on-year (year-on-year).
Monthly Top Cryptocurrencies Exchanges Trading Volumen, 2023. Source: CoingGecko.com
Take a deep dive into decentralized exchanges (DEX) trading volume in 2023
The Top 10 DEXs recorded trading volume of $205.3 billion in Q4 2023, indicating an increase in total trading volume of +87.1% quarter-on-quarter. Uniswap, Pancakeswap, Orca, Curve and THORSwap dominate the DEXes in the Top 10 spot DEX trading volume of 2023.
Notably, the report names Orca and THORSwap as the biggest gainers among DEXs in the fourth quarter of 2023, with Orca rising 1,079% ($12.2 billion), while THORSwap rose 422.4% ($10.1 billion).
When breaking down the 2023 DEX trading volume breakdown by chain, the report indicates that Ethereum had $99.3 billion in DEX trading volume in the fourth quarter of 2023, up +38.3% from the third quarter of 2023. However, it ended with a low dominance of 41%, falling below 50% for the first time in November and December.
It’s worth noting that Solana was the biggest gainer, up 985.5% quarter-over-quarter, while THORChain took second place with a 422.4% increase in trading volume in the fourth quarter. The data shows that the two chains ranked third and fifth in December 2023.
Bitcoin is trading at $42,423.7 in the hourly chart. Source: TradingView.com
Featured image from Unsplash.com, chart from TradingView.com
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