Spot trading volumes on centralized crypto exchanges saw a significant surge last month, marking the highest month-on-month increase since early 2021. According to research from CCData, the total spot trading volume rose by 87.2% to $632 billion in October, the highest monthly volume recorded since March 2023.
The Rise of Spot Trading Volumes
The increase in spot trading volumes can be attributed to the return of volatility and bullish price action in the digital asset markets. This has led to an uptick in interest, with the potential approval of a spot Bitcoin ETF on the horizon. As the report states, “The return of volatility, combined with the bullish price action, has hinted at an uptick in interest in digital asset markets, with the potential approval of spot Bitcoin ETF on the horizon.”
“The return of volatility, combined with the bullish price action, has hinted at an uptick in interest in digital asset markets, with the potential approval of spot Bitcoin ETF on the horizon.”
Derivatives trading volumes on centralized exchanges also saw a significant increase, rising by 44.4% to $1.94 trillion. This marks the highest monthly derivatives volume recorded since June 2023. However, the derivatives market share on centralized exchanges stands at 75.4%, the lowest since March 2023. The CME exchange saw a notable increase in derivatives trading volume, rising by 73.5% to $57.4 billion. BTC futures trading volume rose by 73.4% to $44.1 billion, while ETH futures rose by 60.6% to $10.2 billion, the highest since April 2023.
“The return of volatility, combined with the bullish price action, has hinted at an uptick in interest in digital asset markets, with the potential approval of spot Bitcoin ETF on the horizon.”
Additionally, BTC options and ETH options volume on the CME rose by 142% and 107% to $1.75 billion and $532 million, respectively, reaching an all-time high for these instruments since their inception. This suggests that institutional interest in BTC and ETH is on the rise as the markets enter a new cycle.
Changes in Market Share
In terms of market share, Upbit made the largest gain, with the exchange now accounting for 9.16% of trading volumes on centralized exchanges. This is the largest market share for the Korean crypto exchange since its inception, benefiting from the renewed interest and positive sentiment in the altcoin market last month. Meanwhile, Binance’s market share among centralized exchanges continued to fall, recording the eighth consecutive month of decline to 31.9%. Despite the exchange recording a 74.9% increase in spot trading volumes to $202 billion, Binance’s market share has now dropped to the lowest level since May 2022. Other major exchanges, including HTX and DigiFinex, also saw their market share decline by 1.42% and 1.20% to 4.52% and 4.72%, respectively, in October.
The renewed interest in spot trading comes amid optimism around the launch of a spot Bitcoin ETF. The news has also fueled the recent rally in crypto markets, which saw the flagship cryptocurrency reach $35,198, the highest level since May 2022. Several prominent investment giants, including BlackRock and Fidelity, as well as crypto-focused firms like Grayscale, have submitted applications for spot Bitcoin ETFs. The U.S. Securities and Exchange Commission (SEC) is currently reviewing eight to ten filings for new spot Bitcoin products, although details regarding the timing of decisions are still unclear.
