The spot trading volume of centralized crypto exchanges (CEXs) increased significantly by 13.7% in August, climbing to $877.5 billion. This growth reflects a notable improvement from the $760 billion recorded in July, marking the second consecutive month of rising trading volumes.
Despite most cryptocurrencies, including Bitcoin, ending August with losses, the overall spot trading volume on CEXs grew. Before July, the spot exchange trading volume had consistently declined since peaking at nearly $1.7 trillion in March 2024. However, the recent uptrend in trading volume indicates renewed activity in the market.
CEXs outperform 2023 trading volumes
Data from The Block reveals that 2024 has been a strong year for CEXs regarding spot trading volume. Over the past eight months, the average legitimate trading volume has remained above $600 billion. This sustained activity on exchanges highlights the market’s resilience, even amid price fluctuations.
The average monthly trading volume in 2023 was approximately $300 billion. This year’s improved performance can be attributed to the rising prices of cryptocurrencies, spurred by the introduction of spot Bitcoin and Ether exchange-traded funds (ETFs).
Centralized Exchange Volume (Source: The Block)
The overall spot exchange trading volume also increased 6.6%, reaching $1.2 trillion in August, up from $1.12 trillion in July. Although this figure is still below the peak of $2.48 trillion in March, it represents a recovery from the $1.1 trillion low in June.
Binance leads in spot trading as OKX faces stiff competition
Binance continues to dominate the market in both spot and futures trading. In August, Binance recorded $448.45 billion in spot trading volume. Its derivatives trading volume for Bitcoin futures reached $535.07 billion, while Ethereum futures stood at $244.1 billion.
Bybit, Crypto.com, and Huobi emerged as strong competitors in spot trading. Bybit recorded $154.26 billion in spot trading volume, followed by Crypto.com with $95.77 billion and Huobi with $67.98 billion. Over the past three months, these exchanges have gained ground, particularly at the expense of OKX, which has seen its market share diminish.
However, OKX remains a significant player in derivatives trading. In August, the exchange posted a trading volume of $291.12 billion for Bitcoin futures and $205.15 billion for Ethereum futures. Other exchanges, such as BitGet and ByBit, performed well in the derivatives market. BitGet reported a combined trading volume of $471 billion for Bitcoin and Ethereum futures, while ByBit registered $365.18 billion.
The derivatives market sees a decline in trading volumes
The derivatives market, particularly for Bitcoin and Ethereum futures, experienced a different trend in August. According to The Block’s data, the trading volumes on centralized exchanges declined for both assets. Bitcoin futures trading volume fell by 8.33%, reaching $1.65 trillion, while Ethereum futures saw an 8.62% drop to $743.86 billion.
This decline contrasts with the growth observed in spot trading, highlighting the differing dynamics within the cryptocurrency market. While spot trading volumes have increased, the derivatives market has seen a contraction, reflecting shifting investor sentiment and market conditions.
The spot trading volume on CEXs showed significant growth in August despite broader market challenges. Binance maintained its lead in spot and futures trading while exchanges like Bybit and Crypto.com gained ground. However, the derivatives market faced a downturn, with notable declines in Bitcoin and Ethereum futures trading volumes.