The Surge in Bitcoin Spot Trading Volume
Recently, the Bitcoin (BTC) spot trading volume on centralized exchanges (CEXes) has soared to its highest levels, echoing a market rebound. According to Kaiko’s data, Bitcoin spot trading volume across major CEXes reached a remarkable $34.05 billion on February 28. Binance stood out with $17.09 billion, securing its lead in the crypto trading realm. Bybit, Coinbase, OKX, and Kraken followed closely, indicating a robust trading activity.
The spike in Bitcoin spot trading volume aligns with the ongoing surge in the leading cryptocurrency’s value, driven by optimism surrounding spot ETFs. BTC surged above $63,000 recently, inching closer to its all-time high of $68,982.20. This momentum has invigorated the market, driving a renewed interest in retesting the record high.
Industry Expert Insights
“The current rally in the crypto market marks a qualitatively new chapter in the world of cryptocurrencies,” remarked Sergei Gorev, a risk manager at Web3 fintech platform YouHodler.
Gorev highlighted the transition of funds from lower-quality altcoins to more established cryptocurrencies. Additionally, he pointed out the low margin lending levels, presenting growth opportunities for BTC. Noteworthy are the upcoming BTC halving in April 2024 and the significant daily purchases of BTC ETFs, surpassing daily miner production.
The data from last year revealed a decline in trading volume on centralized exchanges. While global trends showed a decrease, Korean exchanges managed to boost their market share. Despite a temporary drop from $45 billion to $23 billion, Korean exchanges have since rebounded, hitting $37 billion in trading volume, showcasing their resilience against global counterparts.
Comparisons between Binance, Coinbase, and major Korean exchanges displayed consistent higher volumes for the latter, underlining their growing influence globally. The market share of Korean exchanges relative to Binance has steadily risen from 7% to 16% throughout the year, indicating a shift in market dynamics.
