Trading Volume of Crypto Exchanges Reached 10.3 Billion Dollars in 2023, According to New Data
CoinGecko’s 2023 Annual Crypto Industry Report has been published. Covers crypto exchanges and their current situation, Bitcoin’s +155.2% and Ethereum’s +90.5% growth, analyzes NFT trading volume throughout the year, and more.
Highlights of the report include a comprehensive review of crypto trading volume in 2023 through the performance of centralized crypto exchanges (cex) and decentralized exchanges (DEX).
Centralized Crypto Exchanges Dominate
Crypto saw a trading volume of $36.6 trillion in 2023, showing a +53.1% volume increase from Q3 ($6.7 trillion) to Q4 ($10.3 trillion). The increase in Q4 marked the first quarter (quarterly) growth of 2023 and can be attributed to a “growing bullish trend” in the crypto market due to the expectation of spot Bitcoin ETFs being approved by the SEC.
Despite market challenges such as the aftermath of FTX’s collapse, the worldwide banking crisis, or Binance‘s regulatory challenges in 2023, the data presented in the report shows that overall the market is recovering.
In December 2023, trading volume rose sharply to $4.3 trillion; This is a volume not seen since March 2023. Looking ahead to 2023, centralized exchanges dominated the year despite the challenges, especially when compared to decentralized exchanges (DEX). Details of the report:
- The spot transaction volume ratio from CEX to DEX hovered around 91.5% in the 4th quarter.
- CEX/DEX derivatives trading volume rate decreased from 98.5% to 97.3%.
- CEX’s DEX spot rate stood at 91.4% in 2023.
- The ratio of CEX to DEX derivatives was 98.1% in 2023.
The top 10 CEX recorded $2.20 trillion in spot trading volume in Q4 2023, up +98.1% in the quarter. Previously, transaction volume had never exceeded $2 trillion for two consecutive quarters.
In total, the spot trading volume of the top 10 CEXs was recorded at $7.2 trillion in 2023, compared to $9.4 trillion in 2022; This indicates a decrease of -23.4% on an annual basis.
A Deep Look at the Trading Volume of Spot Decentralized Exchanges (DEX) in 2023
Top 10 DEXes recorded spot trading volume of $205.3 billion in Q4 2023; This represents a +87.1% Total Trading Volume Increase in the Quarter. Uniswap, PancakeSwap, orca, Curve and THORSwap dominate the DEXs in 2023 Top 10 spot DEX trading volume.
The report specifically states that Orca and THORSwap are the top gainers among DEXs in the 4th quarter of 2023; Orca increased by 1,079% ($12.2 billion), while THORSwap increased by 422.4% ($10.1 billion).
Analyzing the 2023 spot DEX trading volume breakdown by chain, the report details that Ethereum had $99.3 billion in DEX trading volume in Q4 2023, an increase of +38.3% over Q3 2023. But it ended with a low dominance of 41%, falling below 50% in November and December for the first time in 2023.
It is worth noting that solana achieved the biggest gain in the quarter with an increase of 985.5%, while thorchain came in second with a transaction volume increase of 422.4%. Data shows that the two chains ranked 3rd and 5th in December 2023.
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