The volume of spot and derivative transactions of centralized exchanges increased in 2023
The volume of transactions in centralized digital currency exchanges has increased since the beginning of the year. This recovery took place only two months after the rate of withdrawal and exit from this sector had intensified.
According to Wallex and quoted by Bein Crypto, these findings were reported by an analyst with the pseudonym Wu Blockchain on February 13. This report was dedicated to the activity of centralized exchanges in January.
According to the findings of Wu Blockchain, spot market transactions on major exchanges in January grew by 57.8% compared to December. BitMart, Upbit and KuCoin exchanges experienced the largest increase in volume. This increase in the first two cases was more than 100%.
Last month, Binance, the world’s largest digital currency exchange, saw a 61.3% increase in its spot trading volume. The volume of the centralized exchange Coinbase also grew by 51.2% during the same period.
Wu also checked the incoming traffic to the exchange websites and found that the incoming traffic to these sites increased by 4.5% compared to December.
After the fall of FTX exchange in November, we saw a massive outflow of capital from centralized exchanges. Anxious investors come to the conclusion that personal custody of digital assets is the safest option for them. As a result, billions of dollars of digital currency were withdrawn from centralized exchanges in November and December.
In addition to the increase in the volume of the spot market, the derivative market also improved. Derivatives are contracts such as futures, options, and swaps that are designed and priced based on the underlying asset.
According to Wu, the volume of derivative transactions in the main exchanges increased by 47.6% in January. The three leaders of this growth were Phemex, Bybit and Gate.io exchanges with 190, 98 and 85% increase respectively. Also, the volume of future transactions of Binance exchange experienced a 60.5% increase.
However, Wu cautioned that he did not know how much bots contributed to these transactions.
On February 13, Glassnode, an on-chain data analysis service, reported that outflows from centralized exchanges once again exceeded inflows:
In the last few days, the digital currency market once again experienced a decrease in value. The total market value, with a slight decrease, reached $1.06 trillion at the time of writing.
The markets have been stabilizing and slightly fluctuating during the last three weeks. A bigger pullback may be on the way, despite firm resistance to the upside.
Additionally, recent moves by the US Securities and Exchange Commission (SEC) to crack down on cryptocurrency staking service providers seem to have weighed on investor sentiment.
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