With major DEXs like Uniswap v3 experiencing a 320% surge in trading volumes, Bybit's Institutional Report 2024 highlighted a substantial growth in monthly trading volumes on centralized exchanges (CEXs) from October 2023 to March 2024.

During this period, the crypto market cap surged from just over $1 trillion to over $2.5 trillion, signaling positive trends and a significant increase in trading activities.

According to the report, OKX saw an impressive 278% increase in trading volumes since October, closely followed by Binance with a 239% rise. Bybit Exchange showcased remarkable growth with a 264% surge, while Coinbase recorded a 193% uptick, slightly below the industry's average growth rate of 255%.

The surge in CEX trading volumes can be mainly attributed to the rise in Bitcoin's price, coinciding with the approval of spot Bitcoin ETFs in the U.S. The report also highlighted bullish trends in the derivatives market, notably for Bitcoin (BTC) and Ethereum (ETH).

Despite some sideways movements in March and April, investors showed optimism through a high call premium for BTC and ETH futures contracts. This suggests a positive long-term outlook for both cryptocurrencies throughout the year.

BTC's significance as a hedge in traditional finance (TradFi) portfolios was emphasized, showing a correlation below 3% with traditional assets, such as stock indices and fixed income. Allocating a small percentage of a portfolio to BTC and ETH can enhance risk-adjusted returns, improving the Sharpe ratio and overall portfolio performance.

Challenger chains, including Solana (SOL), have performed well, surpassing ETH in performance since Q4 2023. Solana has maintained momentum as a challenger chain, excelling in Total Value Locked (TVL) and transaction volume.

Furthermore, the resurgence in the crypto industry's venture capital (VC) funding was noted, with investments diversifying into various sectors beyond infrastructure projects, including gaming and AI ventures. VC deals and funding have increased significantly, signaling a positive trend in the sector's growth and development.