The annual Crypto Industry Report for 2023, released by CoinGecko, provides a comprehensive overview of the cryptocurrency market, highlighting key statistics and trends that shaped the industry throughout the year. With a focus on trading volume, the report reveals that the crypto market saw remarkable growth in 2023 despite various challenges and uncertainties.
Trading volume surges to $36.6 trillion
In 2023, the cryptocurrency market experienced a surge in trading volume, reaching a staggering $36.6 trillion. This marked a significant increase of 53.1% from the third quarter (Q3) to the fourth quarter (Q4), where trading volume rose from $6.7 trillion to $10.3 trillion.
Notably, this Q4 increase represented the year’s first quarter-on-quarter (QoQ) growth. It was attributed to the growing bullish sentiment in the crypto market, fueled by the anticipation of the SEC’s approval of spot Bitcoin ETFs.
Despite facing challenges such as the aftermath of FTX’s collapse, global banking crises, and regulatory difficulties faced by exchanges like Binance, the data presented in the report indicates an overall market recovery. December 2023 witnessed a sharp increase in trading volume, reaching $4.3 trillion, a level not seen since March 2023.
Centralized exchanges dominate
Throughout 2023, centralized exchanges (CEX) continued to dominate the cryptocurrency trading landscape, outperforming decentralized exchanges (DEX). The report highlights that:
The CEX to DEX spot trading volume ratio was 91.5% in Q4.
The CEX to DEX derivatives trading volume ratio decreased to 97.3% from 98.5%.
The CEX to DEX spot ratio averaged 91.4% for the entire year.
The CEX to DEX derivatives ratio was 98.1% for 2023.
Among the top 10 centralized exchanges by trading volume were Binance, Upbit, OKX, Bybit, and Coinbase. Despite Binance experiencing a decline in its market share, it managed to maintain its position at the top of the list throughout 2023.
Impressive growth in CEX spot trading volume
The top 10 centralized exchanges recorded a significant increase in spot trading volume, with a QoQ growth of +98.1% in 2023 Q4, totaling $2.20 trillion. This surge in volume marked a turnaround after two consecutive quarters of trading volume failing to surpass the $2 trillion mark.
However, it’s worth noting that the overall spot trading volume for the top 10 CEXes in 2023 was $7.2 trillion, a decrease of -23.4% year-on-year (YoY) compared to $9.4 trillion in 2022.
While centralized exchanges dominated the trading volume, decentralized exchanges demonstrated their resilience and growth potential. The top 10 DEXes recorded $205.3 billion in spot trading volume in 2023 Q4, indicating an impressive +87.1% QoQ increase. Leading DEXes in 2023 included Uniswap, Pancakeswap, Orca, Curve, and THORSwap.
The report highlights two standout performers among the DEXes in 2023 Q4. Orca recorded a remarkable increase of 1,079%, reaching $12.2 billion in trading volume, while THORSwap experienced a surge of 422.4%, totaling $10.1 billion. These notable gains underscore the dynamism and potential of decentralized exchanges in the cryptocurrency market.
Ethereum’s dominance in DEX trading volume
Ethereum remained a significant player in the DEX trading volume, with $99.3 billion in 2023 Q4, reflecting a +38.3% increase from the previous quarter (Q3).
However, Ethereum’s dominance dropped below 50% for the first time in 2023 during November and December, ending the year with a 41% market share.
Solana and THORChain: The top gainers
The report highlights Solana as the most significant gainer in trading volume, with an impressive 985.5% increase in QoQ. THORChain also exhibited remarkable growth, securing the second-place position with a 422.4% trading volume increase in Q4.
These two chains notably ranked #3 and #5, respectively, in December 2023, signaling their rising prominence in the cryptocurrency ecosystem.
