Binance Spot Market Share Spiked First Time in Months as BTC Futures Products Rise: CCData

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The cryptocurrency market recorded massive gains towards the end of 2023 in several areas as the uptick in asset prices was seen in centralized exchange numbers, institutional funds, and decentralized applications (dApps). 

A Jan 10 market report by cryptocurrency research firm CCData shows the performance of centralized digital asset exchanges in December, the CME market, and top developments of exchanges in the market. 

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Crypto spot volumes reached $1.34tn in Dec their highest level in 2023 #Binance‘s spot volume rose 38.3% to $425bn in Dec CME derivatives volume up 3.35% to $70.2bn, the highest level since Nov 2021https://t.co/LwoYttccsK

— CCData (@CCData_io) January 10, 2024

According to the report, spot and derivatives trading volume across centralized exchanges grew for the third straight month hitting $4.68 trillion in volumes. The 28.4% market growth spurred to levels not recorded since June 2022 before the impact of industry implosions and the bear window took effect

Particularly, spot volumes were up 34% to $1.34 trillion in December and a 125% growth in the last quarter of the year while derivatives notched a 26% rise to $3.34 trillion marking the highest point since December 2021.

Also, the CME’s market dominance for Bitcoin (BTC) open interest posted an uptick after moving past Binance as the largest base for Bitcoin futures by open interest in November. The exchange figure grew by 17.5 % to $4.83 billion with its market share slightly increasing by 2.55% to 31.6%. 

“The derivatives trading volume on the CME exchange increased by 3.35% to $70.2 billion, marking the highest volume since November 2021. Meanwhile, the trading volume for BTC Options surged by 85.9% to $2.24 billion, suggesting that investors might be hedging their positions in anticipation of the upcoming spot Bitcoin ETF decision,” the report added. 

Binance leads trading volumes

Binance was the highest-ranked cryptocurrency exchange in terms of derivative trading volumes in December hitting $1.58 trillion, a 25% increase from November, while OKX and Bybit followed with $857 billion and $443 billion in volumes a 30% and 18.1% increase respectively. 

Binance continues to dominate derivatives figures with 47.1% of the market share while OKX and Bybiy come next with 25.6% and 13.3% respectively. 

Overall Binance dominated the spot market in December ending the year on a high as it marked a rise in market share for the first time since March in a year riddled with regulatory hurdles in certain jurisdictions. 

The United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) filed charges against the exchange for offering trading services to unregistered securities, improper registrations, and targeting US consumers.

The exchange also exited the Russian market amid regulatory tensions and posted declining spot volume figures for months before ending the year with a settlement from the United States Department of Justice (DOJ) that led to its former CEO Changpeng Zhao stepping down from the role. 

Analysts at CCData cite the increased anticipation for a spot BTC ETF by the SEC for the bullish momentum recorded in the market. Several cryptocurrency firms and wealth managers projected market growth should applications get the regulatory nod.

Anticipate a substantial #Bitcoin surge to $50,000 in January, driven by an imminent #BitcoinSpot #ETF approval, institutional buying, and factors such as supply shortage and historical trends, with potential for #altcoin season and a funding rate reaching +66%.

Read the full… pic.twitter.com/sueG5LqENp

— Matrixport (@realMatrixport) January 2, 2024

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