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According to the institutional industry report released by Bybit on April 18, 2024, centralized cryptocurrency exchanges (CEX) like Binance experienced a significant surge in trading volume from October 2023 to March 2024.
However, the growth of CEX did not surpass the faster expansion of decentralized exchanges (DEX). For instance, data from Bybit emphasizes that the trading volume of leading DEX Uniswap v3 increased by 320% during the same period.
Bybit and Treehouse released a comprehensive report on the adoption of cryptocurrencies by institutions in 2024 to gain insight into the current status of global CEX trading volume and cryptocurrency adoption, comparing it with Traditional Finance (TradFi).
The surge in trading volume from October 2023 to March 2024 propelled the cryptocurrency industry's market cap from over $1 trillion to over $2.5 trillion by the end of March, highlighting increased investor confidence and significant capital inflows.
During this period, monthly trading volumes of some central exchanges saw substantial growth.
It is noteworthy that since October, OKX's 30-day trading volume has grown by 278%, followed closely by Binance, which grew by 239%. Bybit exchange also demonstrated impressive growth, with trading volume increasing by 264% during the same period.
A spokesperson from Bybit confirmed that the growth rates of these exchanges exceeded the industry's average growth rate of 255%. The U.S. exchange Coinbase also experienced growth, albeit slightly behind, with trading volume increasing by 193%.
The report attributes the growth to several factors, including the rise in Bitcoin prices, particularly after the approval of spot Bitcoin Exchange Traded Funds (ETFs) in the United States.
Bybit uses a comparison of 30-day trading volumes between October 2023 and March 2024 to mitigate daily trading volume fluctuations and showcase the growth in trading volume and market share changes among CEX.
According to Bybit's data, although OKX's growth rate exceeded Binance's during the analysis period, Binance remains the largest cryptocurrency exchange, accounting for at least 58% of spot trading volume.
By market share, Bybit is the second-largest exchange, holding a market share of 9.6% as of March 2023, while competitor OKX accounts for approximately 9% of total cryptocurrency trading volume.
In the derivatives market, the 30-day trading volume of CEX also saw a slight increase, with Binance, OKX, and Bybit leading the way. As the largest participant, Binance's derivatives trading volume increased by approximately 66% during this period.
The report also reveals the current supply dynamics of Bitcoin, indicating that the upcoming Bitcoin halving event could significantly reduce the available supply of the digital currency on exchanges.
The report states that the upcoming Bitcoin halving will reduce the supply of new Bitcoin by 50%, leading to a significant reduction in Bitcoin reserves on centralized exchanges.
The report emphasizes that with exchanges left with only 2 million Bitcoins, assuming $500 million flows into Bitcoin spot ETFs daily, approximately 7,142 Bitcoins are expected to leave exchange reserves per day. This trend suggests that exhausting all remaining reserves may only take nine months.
Additionally, the report highlights that, as indicated by the Stock-to-Flow (S2F) ratio, Bitcoin's scarcity after the halving will be twice that of gold. The S2F ratio is calculated by dividing the circulation supply of a commodity by its annual production and is used to measure scarcity.
Before the halving, Bitcoin's S2F ratio was approximately 56, while gold's was 60. However, it is estimated that after the halving in April 2024, Bitcoin's S2F ratio will double to 112. |
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Post time 30-4-2024 07:24:48