In November, the crypto markets fell significantly after the collapse of one of its largest centralised exchanges, FTX. This resulted in a market wide sell-off, with Bitcoin falling 16.3% to $16,978. As a result, trading activity across centralised exchanges rose sharply, with spot and derivatives trading volume increasing by 13.7% and 10.1%, respectively in November.
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Key takeaways:
- Spot and derivatives trading on centralised exchanges rose 13.7% and 10.1% to $1.06tn and $1.44tn, respectively. This was the largest volume recorded for spot and derivatives markets since September.
- Total derivatives trading volume hit $297bn on November 8th, recording the second largest derivatives trading day in digital asset history, only next to May 19th 2021, which traded $384bn.
- Binance has increased its market share to 52.9% - its largest-ever market dominance. The exchange also recorded its highest market share in the derivatives trading markets, with a dominance of 67.2%. Users have migrated their assets and trading activity to more reputable and established exchanges that are deemed safer.
- 293,332 BTC futures contracts were traded in November, up 4.99% since October. This was the largest number of BTC futures contracts ever traded on the CME. The number of ETH futures contracts also rose, with 168,664 traded in November, up 27.6% since October.
- BTC netflows record the largest outflows from exchanges in its history with a netflow of -91,363 following FTX's collapse.
Lowest Low-Tier Spot Trading Volume Since June 2018
In November, total spot trading volumes increased 13.7% to $1.06tn. Top-Tier spot volumes increased 17.9% to $817bn, and Lower-Tier spot volumes decreased 15.4% to $99.7bn. This is the lowest spot trading volume recorded for Lower-Tier exchanges since June 2018.
Top-Tier exchanges now represent 90.6% of total spot volume based on CryptoCompare’s new Exchange Benchmark Ranking. This is the highest market share Top-Tier exchanges recorded in its history.
BTC Netflows Record Largest Outflows from Exchanges
Following the collapse of FTX on November 8, centralised exchanges have seen a string of outflows as investors panic over the safety of their deposits on the platforms. In November, BTC Netflows recorded the largest negative flow from the CEXs in its history with a netflow of -91,363 BTC.
Spot Volume for AA-A Exchanges Increase
In November, spot volume from the 8 graded AA-A exchanges increased by 31.1% compared to October, with total spot volumes of $608bn.
Considering individual exchanges, Binance (Grade A) was the largest Top-Tier spot exchange by volume in November, trading $521bn (up 29.5%). This was followed by Coinbase (Grade A) trading $6.07bn (up 32.3%) and Kraken (Grade A) trading $28.5bn (down 29.6%).
Amount of BTC Futures Contracts Traded on CME Reaches Record High
293,332 BTC futures contracts were traded in November, up 4.99% since October. This was the largest number of BTC futures contracts ever traded on the CME.
The number of ETH futures contracts also rose, with 168,664 traded in November, up 27.6% since October.
