October marked a significant month for centralized exchanges, with spot volume rocketing by 57.1%. This impressive surge hasn’t been seen since January 2023. Consequently, several major exchanges, notably Binance with a dominant 54% share, have been on the receiving end of this boon.
Binance, already a leader, saw its monthly spot volume climb by 55.5%. Additionally, Coinbase, another prominent player, registered a 53.2% increase. However, the real surprise came from Cryptocom. Their volume skyrocketed by an astonishing 204%. OKX and Bybit weren’t far behind with gains of 76.7% and 67.3%, respectively. Significantly, not all exchanges shared in the prosperity. Upbit, for instance, recorded a 7.9% decline as pointed out by analyst CryptoRank.
🔥 Monthly Spot Exchange Volume Increased by 57% in October
— CryptoRank Platform (@CryptoRank_io) November 2, 2023
Spot volume on leading centralised exchanges surged by 57.1% in October, the highest monthly increase since January 2023. @Binance remains the leading CEX with nearly 54% dominance.
Monthly spot volume change by… pic.twitter.com/u3lSwfiWfk
This uptick in trading aligns with the recent price rally in the cryptocurrency space. Moreover, increased volatility, fueled partly by unconfirmed rumors regarding the Securities and Exchange Commission’s (SEC) possible approval of a spot exchange-traded fund, played its role. Hence, this turbulent atmosphere has been a silver lining for exchanges. It’s worth noting that these platforms benefit immensely from heightened volatility, as it often translates to increased trading volumes and, by extension, more significant profits.
Coinbase, set to unveil its earnings on November 6, had previously witnessed its trading volumes slash by over half in the third quarter. Hence, this renewed activity is a welcome change for them. Besides, this lull in trading wasn’t exclusive to the crypto world. In the realm of US equities, there’s been a similar story.
Charles Schwab, a prominent brokerage firm, reported a slump in daily average trades (DATs) from the first to the third quarter. This downturn in activity can be traced back to multiple factors. These include decisions by the US Federal Reserve and the reintroduction of student loan repayments.
While the world of trading, both in crypto and equities, has seen its challenges, the recent surge offers a glimmer of hope. It underscores the dynamic nature of markets and the ever-present opportunity for revival.
