A recent report reveals a substantial spike in trading volumes on centralized cryptocurrency exchanges (CEXs) since late 2023, with major platforms like OKX, Binance, and Bybit witnessing significant growth.

Growth Trends:

- According to Bybit's Institutional Report 2024, OKX saw a remarkable surge of 278% in 30-day trading volumes since October 2023.
- Binance followed closely with a 239% increase, while Bybit itself experienced a notable growth of 264%.
- These exchanges outpaced the industry's average growth rate of 255%, reflecting a robust upward trend in trading activity.
- Coinbase, a prominent U.S.-based exchange, also witnessed a substantial increase in volumes, rising by 193% over the same period.

Factors Driving Growth:

- Bybit attributes the significant growth in CEX volumes to the price rallies of Bitcoin and Ether, particularly following the approvals of spot Bitcoin exchange-traded funds (ETFs) in the U.S.
- The approval of these ETFs likely contributed to increased investor participation and trading activity on these platforms.

Market Share and Positioning:

- Despite OKX surpassing Binance in terms of growth rate, Binance retains its position as the largest cryptocurrency exchange by market share.
- Bybit is positioned as the second-largest exchange by market share, accounting for 9.6% of the market as of March 2024.
- OKX holds around 9% of the total crypto trading volumes, solidifying its presence in the market.

Comparison with DEXs:

- While CEXs experienced significant growth, the growth rate of decentralized exchanges (DEXs) outpaced that of CEXs.
- Major DEX Uniswap v3 witnessed a remarkable increase in volumes by 320%, indicating the growing popularity of decentralized trading platforms.

Derivatives Market:

- Derivatives trading on CEXs also saw a slight increase in volumes, with Binance, OKX, and Bybit dominating the market.
- Binance remains the dominant player in the derivatives market, with significant contributions to overall trading volumes.

Overall, the surge in trading volumes on CEXs underscores the growing interest and participation in the cryptocurrency market, fueled by factors such as ETF approvals and price rallies. Despite the rapid growth of CEXs, DEXs continue to gain traction, highlighting the evolving landscape of cryptocurrency trading.