In November, the combined spot and derivatives trading volume on centralised exchanges rose for the second consecutive month, rising 40.7% to $3.61tn, recording the highest combined monthly trading volumes since March 2023.
The increase in trading activity on centralised exchanges coincides with the bullish price action of major crypto assets, with Bitcoin and Ethereum reaching new yearly highs as positive sentiment engulfs the market ahead of the potential approval of a spot Bitcoin ETF early next year.
Key Findings:
- In November, spot and derivative trading volumes on centralised exchanges reached their highest level since March 2023. Spot trading volume on centralised exchanges rose for the second consecutive month, rising 52.8% to $965.8bn. This was the highest spot trading volume recorded since March 2023. Meanwhile, the derivatives trading volume on centralised exchanges rose 37.3% to $2.58tn, also recording the highest derivatives figures since March 2023.
- Binance's market share continued to decline In November, despite recording a monthly increase in volumes. Spot and derivatives trading volumes on Binance rose 34.2% to $1.57tn, however, the exchange’s market share declined for the ninth consecutive month to 43.4%. With Binance announcing the settlement of the US charges, the exchange will be hoping to boost its market share given the reduced regulatory risk at present.
- The combined spot and derivatives volume for OKX and Upbit rose 58.0% and 45.5% to $731bn and $431bn - an all-time high for both exchanges. The market share of the two exchanges has risen to 20.2% and 11.9%, respectively. This achievement highlights the shifting CEX landscape, with Binance recently agreeing on a settlement with the DOJ,
- Open interest of BTC Futures traded on the CME exchange rose 20.9% to $4.11bn, overtaking Binance as the largest derivatives exchange by open interest. This is the first time CME has become the largest venue for BTC futures trading since October 2021. The rise in open interest on the CME exchange highlights the increase in institutional interest in Bitcoin as the markets anticipate the potential approval of spot Bitcoin ETF next year.
Spot & Derivatives Volumes Reach Highest Level Since March
In November, spot and derivative trading volumes on centralised exchanges reached their highest level since March 2023. Spot trading volume on centralised exchanges rose for the second consecutive month, rising 52.8% to $965.8bn. This was the highest spot trading volume recorded since March 2023.
Meanwhile, the derivatives trading volume on centralised exchanges rose 37.3% to $2.58tn, also recording the highest derivatives figures since March 2023. In terms of volume market share, derivatives now represent 73.3% of the entire crypto market (vs 75.4% in October).
OKX and Bybit Capitalise as Binance's Market Share Declines
Binance was the largest derivatives exchange in November by monthly volume, trading $1.26tn (up 30.5% compared to October), followed by OKX ($660bn, up 53.8%) and Bybit ($375bn, up 42.9%). OKX and Bybit were the best-performing derivatives exchanges in the last month recording an increase of 53.8% and 42.9%.
Among the top 11 derivatives exchanges, Binance leads with a market share of 47.7% of total volumes in October. This was followed by OKX with a market share of 24.9% and Bybit with a dominance of 14.2%. This is the highest market share of Bybit in the derivatives markets since facilitated derivatives trading.
Binance Continues to Lose Market Share, Despite Increasing Volume
Year-to-date, Upbit, Bybit, and OKX have made the largest gain in spot market share, increasing their dominance by 6.39%, 4.89%, and 3.86% to 9.20%, 5.80%, and 7.41%. Meanwhile, Binance, BeQuant and Crypto.com continue to see the highest decline in market share by spot trading volume, falling by 19.5%, 3.28%, and 2.96% to 31.8%, 0.45%, and 2.03%, respectively.
Looking at derivatives volumes, OKX and Bybit saw the highest increase in market share, rising by 2.75% and 0.61% to 24.9% and 14.2% respectively. Meanwhile, Binance saw the highest decline in market share last month, falling by 2.30% to 47.6%. This was Binance's lowest derivatives market share since October 2020.
CME Overtakes Binance for BTC Futures Open Interest
The derivatives trading volume on the CME exchange rose 18.4% to $67.9bn, recording the highest volumes since November 2021. The trading volume for BTC futures rose 16.6% to $51.4bn, whereas the ETH futures rose 13.9% to $13.9bn, the highest since February 2022.
Meanwhile, the open interest of BTC Futures traded on the CME exchange rose 20.9% to $4.11bn, overtaking Binance as the largest derivatives exchange by open interest. This is the first time CME has become the largest venue for BTC futures trading since October 2021.
