Crypto Exchanges Hit Historic High with $10.3 Trillion Trading Surge in 2023, Unveils CoinGecko Report

CoinGecko's Annual Crypto Industry Report for 2023 unveils staggering insights into the crypto landscape, with a particular focus on crypto exchanges, the substantial growth of Bitcoin and Ethereum, analysis of NFT trading volume, and more.

Centralized Exchanges' Dominance:

The report highlights the remarkable growth in crypto trading volume, reaching $36.6 trillion in 2023. Q4 witnessed a significant uptick, surging to $10.3 trillion, marking the first quarter-on-quarter growth of the year. Despite challenges such as FTX's collapse and regulatory issues, the market showcased resilience, propelled by the optimistic outlook for spot Bitcoin ETFs' approval.

CEX vs. DEX Dynamics:

Centralized exchanges (CEX) maintained dominance throughout 2023, constituting 91.5% of the spot trading volume ratio in Q4. Despite a decline in the derivatives trading volume ratio, CEX to DEX ratios remained substantial, underscoring the resilience of centralized platforms.

Top 10 CEX Performers:

Binance, Upbit, OKX, Bybit, and Coinbase emerged as the leading centralized exchanges by trading volume. Binance, despite facing challenges and dropping to a 41% market share in November, retained its dominance, exemplifying its resilience and adaptability in the evolving market.

CEX Trading Volume Rebound:

The top 10 CEXes recorded a notable increase of +98.1% quarter-on-quarter, reaching $2.20 trillion in spot trading volume in Q4. This rebound follows two consecutive quarters where the trading volume failed to surpass $2 trillion, signifying a positive shift in market dynamics.

Monthly Top Cryptocurrencies Exchanges Trading Volumen, 2023. Source: CoingGecko.com

Spot DEX Trading Volume Surge:

Decentralized exchanges (DEX) witnessed substantial growth, recording $205.3 billion in spot trading volume in Q4, marking an impressive +87.1% quarter-on-quarter increase. Uniswap, Pancakeswap, Orca, Curve, and THORSwap emerged as dominant players in the DEX arena.

Biggest Gainers Among DEXes:

Orca and THORSwap stood out as the biggest gainers among DEXes in Q4, with Orca experiencing a remarkable 1,079% surge ($12.2 billion), and THORSwap registering a significant increase of 422.4% ($10.1 billion).

Blockchain Dynamics:

Ethereum led the way in DEX trading volume with $99.3 billion in Q4, showcasing a +38.3% increase from Q3. Notably, Solana and THORChain emerged as standout performers, with Solana experiencing a staggering 985.5% increase quarter-on-quarter.

Bitcoin is trading at $42,423.7 in the hourly chart. Source: TradingView.com

CoinGecko's comprehensive report paints a vivid picture of the crypto exchange landscape in 2023, with resilient growth, dynamic shifts in CEX and DEX dynamics, and standout performances from top players in both centralized and decentralized spheres. The data provides valuable insights into the evolving crypto market trends and the factors influencing trading volumes across various platforms.