January witnessed a notable increase in spot trading volume on centralized exchanges, fueled by the approval of spot bitcoin ETFs in the U.S.
Spot trading volume across centralized crypto exchanges saw a fourth consecutive monthly rise in January, reaching levels last observed in June 2022, as the approval of bitcoin ETFs reignited interest in digital assets.
According to CCData, trading volume surged by 4.45% compared to December, reaching $1.40 trillion.
While the price of bitcoin (BTC) experienced a surge leading up to the Jan. 10 ETF approval, it mostly declined thereafter.
CCData noted that the price action following the highly anticipated approval indicated the end of an uptrend that had persisted for months.
Binance retained its position as the largest cryptocurrency exchange by trading volume, with its volume increasing by 2.73% in January to $473 billion. Despite facing regulatory challenges that led to founder and CEO Changpeng “CZ” Zhao stepping down, Binance still holds a market share of 31.3%.
Coinbase, the primary custodian for most U.S. spot bitcoin ETF participants, experienced a third consecutive monthly increase in market share, rising to 5.42%. Conversely, OKX, the second-largest exchange, witnessed a decline in both trading volumes and market share in January.
In terms of derivatives trading volumes, January saw a 2.79% decrease to $3.25 trillion, marking the first decline in four months. Despite this decline, derivatives trading remains a significant part of the crypto market, comprising 69.9% of total trading volume. Notably, CME experienced the largest increase in derivatives trading volume during the period.
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