A recent report reveals that trading volumes on centralized cryptocurrency exchanges (CEX) like Binance have experienced a significant surge since late last year. The Bybit Institutional Report 2024 provides data showing that many CEXs have tripled their monthly trading volumes from October 2023 to March 2024.
According to the report released on April 18, OKX saw a surge of up to 278% in 30-day volumes since October, closely followed by Binance with a 239% increase. Bybit exchange also stood out as one of the fastest-growing platforms in terms of volumes, experiencing a growth of 264%. All three exchanges have surpassed the industry’s average growth rate of 255%, as confirmed by a spokesperson for Bybit.
Coinbase, the U.S.-based exchange, recorded a 193% increase in volumes, slightly trailing behind the average growth rate.
The significant growth in CEX volumes can be attributed to the price rallies of Bitcoin (BTC) and Ether (ETH) following the approvals of spot Bitcoin exchange-traded funds (ETFs) in the U.S., according to Bybit. By comparing 30-day volumes, Bybit analysts were able to eliminate daily volatility and showcase volume growth and market share changes between CEXs.
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.
The report positions Bybit as the second-largest exchange by market share, holding 9.6% of the market as of March 2023. Rival OKX exchange accounted for around 9% of the total crypto trading volumes.
In contrast to CEXs, the growth trend of decentralized exchanges (DEX) has been even more remarkable. Major DEX Uniswap v3 recorded a 320% increase in volumes, surpassing the growth rate of CEXs. Derivatives CEXs also experienced a slight increase in 30-day trading volumes, with Binance leading the way with a 66% increase.
“The derivatives market for CEXs is almost entirely dominated by Binance, OKX, and Bybit,” the report notes.
Overall, the report highlights the booming trading volumes on CEXs, driven by the rise of Bitcoin and Ether, while also acknowledging the rapid growth of DEXs in the cryptocurrency market.