Apr 09, 2024 12:25
Marchproved to be another breakthrough month for the cryptocurrency market, withspot volumes on the 10 largest exchanges growing by an average of 119% comparedto March, responding to Bitcoin's historical highs, which tested levelsabove $73,000.
Tradingactivity among investors on the largest centralized platforms reached levelsnot seen since May 2021. The record-breakers over the past year, on the otherhand, grew two, three, or even six times.
Cryptocurrency VolumesContinue to Grow for Six Months Straight
In March,Bitcoin closed its seventh consecutive month of uninterrupted growth, addinganother 17% to its value and setting a new all-time high. As a result, thevolumes of the most popular cryptocurrency exchanges grew dynamically,increasing on average by more than 100% compared to February.
I believethat crypto, in general, is gaining more momentum as it finds increased usecases, shifting regulatory landscape and positive price action which indicatesprice recovery, Vivien Lin, Chief Product Officer at BingX, commented forFinance Magnates. With spot trading on the rise, we can use this a goodindicator of newer entrants to trading since it is one of the moststraightforward strategies.
"The combinedspot and derivatives trading volume on centralized exchanges rose 92.9% to anew all-time high of $9.12tn, as traders flocked to the markets while Bitcoinalso reached new all-time highs," commented CCData in its newest marketreport.
Theundisputed leader of this list remains the Binance cryptocurrency exchange,whose volume increased to $1.13 trillion from $506 billion reported inFebruary, an increase of 123%. Binance's market share thus gained onepercentage point and increased to 54%, Upbit accounted for 11% of all activity,ByBit for 9%, and OKX ranked fourth with 8%.
"Spottrading volumes continue to outpace the derivatives markets, with volumesrising 108% to $2.94 trillion, the highest monthly figures since May2021," added CCData.
Record Annual VolumeGrowth, ByBit Up 600%
Althoughthe monthly increases are impressive, the average annual increases were morethan 150%, and the record-breakers gained much more.
"Aresurgent cryptocurrency market has defied the naysayers who dismissed therapidly evolving digital token space as nothing more than hype," commentedAviessa Khoo, the Executive Director at Mercuryo Singapore.
Among them,the ByBit exchange recorded the largest development, with volumes growing 633% from $25 billion to $189 billion compared to March 2023. Huobi ranked second in this list, with growth amounted to 341% from $19 billion.
Upbit,Coinbase, and KuCoin volumes grew over 200% year-on-year (YoY). The remaining exchanges grew over 100%, with Kraken being the only exception. Its volume increased YoY 76% to $49 billion from $28 billion reported inMarch 2024.
The marketis keenly anticipating the upcoming halving event, scheduled to occur in just twoweeks. Historically, halvings have led to substantial increases in Bitcoin'sprice, and analysts already speculate that it could soon hitsix-figure prices. The increasing importance of the newly introduced crypto spot ETFs cannot be forgotten.
The totalmarket cap of crypto in general is predicted to rise greatly by end of year,forecasted Lin. With new institutional entrants, an upcoming halving andgrowing retail demand, these factors combined with a larger trader base makefor building a healthy ecosystem.
This article was written by Damian Chmiel at www.financemagnates.com.
World Crypto Global
