Binance Exchange's Spot Trading Volume Surges to Highest Level Since May 2021
Summary:
Binance Exchange recorded its highest spot trading volume since May 2021, according to a CCData report. The analysis revealed a 121% increase in the exchange's spot trading volume, reaching $1.12 trillion in March, and its market share grew by 1.04% to 44.1%. This resurgence followed after settling a case with the US Department of Justice. The surge in trading volumes, spot markets gains, and year-to-date performance show public trust in the exchange despite recent failures in the sector.
Binance Exchange's spot trading volume has reached its peak since May 2021, after growing consistently for seven months straight, as per a recent study by CCData. The report, released on April 5 by the cryptocurrency analytics platform, disclosed a striking 121% increase in Binance’s spot trading volume to just over $1 trillion in March. The exchange's collective market share showcased a rise as well, gaining an additional 1.04% to make up 44.1% of the market in March, as per the CCData report.
CCData attributed Binance’s resurgence to its settlement with the United States Department of Justice, that included a payout of a $4.3 billion fine. As a result, its derivatives trading volumes surged by almost 90% to $ 2.91 trillion, hitting their highest point since May 2021.
As per the analysis conducted by CCData, in the spot markets, Binance had the most remarkable growth, elevating its market dominance by 2.3% compared to February. The largest year-to-date gains were also seen by the exchange, now representing 38.0% of the spot trading volumes on Centralized Exchanges (CEXs).
Earlier this year, in January, Kaiko, another analytics firm, reported a volume increase in Binance trading. This meant that within just two months of settling its case with the U.S. DOJ, its market share had risen by 50%. Despite regulatory hurdles, the exchange reported more than 40 million new users in 2023. This was nearly a 30% spike compared to the previous year, and Binance attributed this growth to its “essential services”.
In the meantime, the total spot and derivatives trading volume on CEXs also demonstrated a considerable increase of 92.9%, setting a fresh all-time record with $9.12 trillion in March. This coincided with Bitcoin also setting new records, drawing a larger crowd to the markets, CCData stated.
Crypto derivatives CEX trading volume also went up by 86.5% marking a new high of $6.18 trillion, which is triple the aggregate market capitalization of all cryptocurrencies. The analysts believe this surge happened due to the speculative trading as Bitcoin moved towards setting a new record in March.
The sudden rise in spot and derivatives trading activities syncs with the growing enthusiasm stemming from the success of spot Bitcoin ETFs and the forthcoming Bitcoin supply halving scheduled for later in April. This shows that the public's faith in centralized exchanges remains robust, despite recent setbacks like the issues with FTX.
Please note this article does not offer investment advice or recommendations. All investment and trading moves entail some level of risk, and prospective investors are advised to conduct thorough research before making any financial decisions.
Published At
4/6/2024 1:55:05 AM
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