Below is the annual report for 2023 to understand the trend of the crypto centralized exchange industry.
Behind the astonishing $114 million Poloniex hack and the volatile nature of centralized exchanges, this report delves into the intricate behaviors of the cryptocurrency market.
From institutional actors examining the implications of regulatory decisions to analyzing security challenges that have arisen, centralized exchanges play a critical role in each scenario.
A clear synthesis of the critical moments of 2023 is offered in the context of global economic forces through a meticulous examination of market data and industry events.
Combined Quarterly Spot and Derivatives Volumes Expect Last Quarter to Close Above the $8 Trillion Mark
2023 has been a watershed year for crypto exchanges. Trading volumes began to grow again and reached the $10 trillion mark in January 2023. However, the market has been putting downward pressure on volumes for two quarters, showing a pullback phase, a FUD era.
The third quarter marks the end of the pullback, as numbers begin to rise in the final quarter near the $8 trillion mark. As the end of the year approaches, volumes and the overall market are growing, including Bitcoin and altcoins.
Binance Loses Its Grip on Top 10 CEX Market Share as New Players Take Control
Binance began the year with a commanding lead, but the charts told a story of intense rivalry and reversals of fortune as the months passed. Each bar on the chart is a battlefield where market share has been won and lost, with colors stacking up like contenders in a tight race.
It has been a difficult year for Binance. Once it had more than 50% control of the market, its leadership has diminished, due to the drop in trading volumes. The gavel fell hard with a record fine of $4.3 billion from the United States Department of Justice. By the end of the year, the landscape had transformed, with newcomers like Bybit and Bitget making their presence felt.
Binance Dominates Half of Crypto Derivatives Market with 50% Trading Volume
Binance has been the undisputed champion, taking just over half of the market share at 50.9%. While they have maintained a steady lead, the gap is narrowing, and Binance’s share of the pie has dropped to 45%. This shift indicates a market that is heating up as critical players step up their game.
OKX, in particular, is rising steadily, increasing its share from 10% to 15.5% in a year. Bybit, Bitget and MEXC Global are actively chipping away at the lead, carving out their own significant spaces in the market. Together, these contenders hold a formidable 42.3% of the derivatives trade, demonstrating fierce competition.
Binance and Coinbase Are the Goliath and Control More than 60%
Among centralized exchanges (CEX), the battle for user deposits is revealing. Binance stands out with a 32.7% share, while Coinbase follows closely with 29.4%. These heavyweights are not only leading, they are defining the space.
Poloniex Suffered the Biggest Blow in November with a Huge Theft of $114 Million
Poloniex suffered the biggest hit in November with a massive $114 million theft. That number is enough to make the crypto community tremble. CoinEX was not spared either, with its defenses exceeding $70 million in September.
Each hack is a stark reminder that security is not just a feature but the very foundation of the fast-paced world of cryptocurrencies. In 2023, the message is clear: surveillance is non-negotiable, and security is king in the realm of centralized exchanges.
By Audy Castaneda
