In a recent report by Cn.tokeninsight, the top three centralized exchanges (CEX) by market share in Q1 2023 were Binance, OKX, and Bybit. Binance maintained its position at the top with a 55% market share, although slightly lower than the 60% share it held in the previous quarter. OKX and Bybit followed with market shares of 12.8% and 9.47%, respectively, consistent with their rankings in the previous quarter.
Binance’s Strong Performance In Q1 Driven By Bitcoin’s Recovery
The Crypto market experienced a significant boost in Q1, with its market value soaring from $831.8 billion to $1.24 trillion, representing a nearly 50% increase. Bitcoin, the flagship cryptocurrency, played a vital role in this surge, as its price rose from $16,000 at the start of the year to a peak of $30,000, a remarkable 100% increase.
The rise in Bitcoin’s value acted as a catalyst for increased trading activity and market share fluctuations among exchanges. The total trading volume of the top 15 exchanges in Q1 reached an impressive $10.8 trillion, marking a 40% increase compared to the previous quarter.
The most active trading day occurred on March 14-15, when Bitcoin’s price skyrocketed from around $20,000 to over $25,000. While Binance continued to dominate the spot market with a market share exceeding 50%, OKX saw a slight improvement, increasing its share from 5% to 7% in March.
Gate, another prominent exchange, also witnessed an uptick in its market share, returning to 5% after a usual 3% share. However, the spot transaction volume of $2.4 trillion in Q1 showed a 16% increase compared to the previous quarter but fell short of the previous quarters’ performance.
Derivatives trading volume in Q1 2023 reached a staggering $7.794 trillion, nearly catching up with the levels observed in Q3 2022. It marked a substantial 30% increase compared to Q4.
The recovery of Bitcoin prices, coupled with various significant events such as the Hong Kong concept and Arbitrum’s currency issuance, fueled the surge in derivatives trading activity.
Binance, OKX, and Bybit maintained their dominance in the derivatives market, accounting for 85% of the market share. Notably, the platform token BGB outperformed both Bitcoin and Ethereum, achieving a remarkable 120% increase. Other platform tokens, such as GT and OKB, also experienced significant growth, surpassing the 50% mark.
As the Crypto industry continues to evolve, these market share fluctuations and trading volume trends serve as valuable indicators of the industry’s overall performance and its leading players in the dynamic landscape of digital assets.
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