The Bitcoin (BTC) spot trading volume on centralized exchanges (CEXes) has reached the highest level of activity since the collapse of FTX.
According to data provided by Kaiko, Bitcoin spot trading volume across all major CEXes hit an impressive $34.05 billion on February 28.
Leading the charge, Binance accounted for $17.09 billion, solidifying its position as the dominant force in the crypto trading sphere.
Not far behind, Bybit made a notable entry with $3.5 billion, followed closely by Coinbase at $2.98 billion, OKX at $2.92 billion, and Kraken rounding off with $1.05 billion.
Bitcoin Spot Volume Rises As BTC Nears $64,000
The notable increase in Bitcoin spot trading volume as the leading cryptocurrency continues to push higher amid the optimism surrounding spot ETFs.
On Wednesday, BTC shoot above $63,000 for the first time since November 2021, briefly touching $64,000 before turning lower.
The flagship cryptocurrency is just below its all-time high of $68,982.20, which was recorded in November 2021.
With the record in clear sight, the market has been even more motivated to see that level retested.
Bitcoin has soared nearly 20% this week alone, after a week-long pause of this year’s rally. It’s now up more than 40% for 2024.
“The current rally in the crypto market marks a qualitatively new chapter in the world of cryptocurrencies,” Sergei Gorev, risk manager from Web3 fintech platform YouHodler, said in a comment.
“We can observe that, if previously most cryptocurrencies were moving in the same direction, now the highest quality and stable dynamics are observed in BTC, where more liquidity is pouring in every day.”
Gorev added that money is currently moving from lower-quality altcoins into more established cryptocurrencies.
Furthermore, the level of margin lending is at a rather low level, which gives opportunities for further growth of BTC.
“Do not forget about the upcoming BTC halving, which will take place on April 21, 2024, as well as the fact that at the moment, spot BTC ETFs buy 10 times more BTC daily than miners produce each day,” he noted.
Declining Trading Volume on CEXes
Last year, crypto researcher CCData reported that centralized exchanges have witnessed a significant decline in trading volume.
In September, the combined spot and derivatives trading volume on these exchanges dropped by 20.3% to reach $1.67 trillion, marking the lowest monthly trading volume recorded since December 2022.
Despite an overall decreasing trend in trading volume across centralized exchanges (CEX), Korean exchanges have managed to increase their market share and trading volume.
After reaching a peak of $45 billion in total trading volume in February, the volume experienced a decline, hitting $23 billion in May.
However, it has since shown an upward trajectory, reaching as high as $37 billion in July. This growth outpaced that of Binance, demonstrating the relative strength of Korean exchanges in the international market.
In fact, when comparing trading volumes with Binance and Coinbase, the four major Korean exchanges consistently showcased higher volumes, indicating their significant presence in the global landscape.
Over the course of the year, the market share of these exchanges relative to Binance has seen a notable increase, rising from 7% in March to 16% in September.