The recent Institutional Report by Bybit unveils a substantial surge in monthly trading volumes across centralized exchanges (CEXs) from October 2023 to March 2024. During this period, the cryptocurrency market cap skyrocketed from just above $1 trillion to over $2.5 trillion.

Key Highlights and Positive Trends

OKX witnessed a remarkable 278% increase in trading volumes since October last year, closely followed by Binance with a 239% surge. Bybit Exchange emerged as one of the fastest-growing platforms, boasting a remarkable 264% growth in trading volumes. Additionally, Coinbase, based in the U.S., experienced a rise in volumes by 193%, slightly below the industry’s average growth rate of 255%.

Reasons Behind the Surge

The substantial growth in CEX volumes is mainly attributed to the soaring prices of BTC, coinciding with the approvals of spot Bitcoin ETFs in the U.S.

Bullish Outlook and BTC’s Role as a Hedge

Despite some sideways movements in March and April, investors remain optimistic, as indicated by the significant call premium observed for both BTC and ETH futures contracts. This optimism suggests a bullish sentiment towards the long-term price prospects of these cryptocurrencies throughout the year.

Furthermore, the report emphasizes BTC’s role as a hedge in traditional finance portfolios, with both BTC and ETH showing correlations with traditional financial assets consistently below 3%.

Challenger Chains and VC Funding Surge

Challenger chains, particularly Solana (SOL), have outperformed ETH since Q4 2023, maintaining momentum in Total Value Locked (TVL) and transaction volume. Additionally, the venture capital (VC) funding in the crypto industry has witnessed a resurgence, with a notable focus on infrastructure projects alongside investments in gaming and AI sectors.

Conclusion

The cryptocurrency market is experiencing significant growth, with soaring trading volumes, bullish trends, and increasing VC funding. As the market continues to evolve, investors remain optimistic about the long-term prospects of cryptocurrencies like BTC and ETH, signaling a promising future for the crypto industry.