Executive Summary: Exchange Review March 2023

CCData’s Exchange Review captures the key developments within the cryptocurrency exchange market, analysing spot markets, derivatives, fiat volumes and more. In March 2023, centralised exchanges experienced a significant increase in trading volumes, marking the third consecutive month of growth. This surge can be attributed to the turbulent market conditions, such as the collapse of USDC’s banking partner Silicon Valley Bank, and the positive sentiment following market recovery. The combined spot and derivatives trading volume on centralised exchanges rose 25.9% to $3.81tn, recording the third consecutive month of increasing monthly trading volumes. Centralised exchanges also recorded the highest combined spot and derivatives volumes since September 2022. Download the full report here . Key takeaways: Binance’s spot market share across top-tier exchanges fell for the first time in five months, decreasing from 62.0% in February to 57.7% in March. Meanwhile, Binance’s derivatives market share has continued to rise, recording an all-time high market share of 64.0% as of March. Spot trading volume on Binance rose 2.54% to $554bn, while its counterparts saw a significant increase with OKX and Coinbase registering a rise of 29.7% and 23.5% to $54.9bn and $49.3bn, respectively. Currently, Binance offers only zero-fee trading for BTC-TUSD and ETH-TUSD trading pairs. In March, the derivatives trading volume across centralised exchanges rose 32.6% to $2.77tn, the highest volume since September 2022. Meanwhile, the spot trading volume on centralised exchanges rose 10.8% to $1.04tn. In March, the total derivatives trading on CME (including futures and options) rose 34.5% to $48.8bn, the highest since January 2022. This recorded the third consecutive increase in volumes traded on CME, highlighting the increased institutional interest in the industry. The derivatives market now represents 72.7% of the entire crypto market (vs 69.0% in February). This is an all-time high for the market share of derivatives. Exchange Review Binance’s Spot Market Share Slides After Halting Trading Incentives Binance’s spot market share across top-tier exchanges fell for the first time in five months, decreasing from 62.0% in February to 57.7% in March. The decline in its market share coincides with the recent legal issues faced by BinanceUSD, and the halting of trading incentives such as zero-fee trading pairs for BTC-BUSD, and ETH-BUSD pairs. Spot trading volume on Binance rose 2.54% to $554bn, while its counterparts saw a significant increase with OKX and Coinbase registering a rise of 29.7% and 23.5% to $54.9bn and $49.3bn, respectively. Currently, Binance offers only zero-fee trading for BTC-TUSD and ETH-TUSD trading pairs. Meanwhile, Binance’s derivatives market share has continued to rise, recording an all-time high market share of 64.0% as of March. https://medium.com/media/8aaff200b90772f2d06d97c490091ee8/href https://medium.com/media/f6318f68316dca28c5b5bf5cca1977f2/href Trading Volumes Rise for Third Consecutive Month In March, the total spot trading volumes rose 10.8% to $1.04tn, recording the third consecutive increase in monthly volumes. Top-Tier spot volumes increased 10.2% to $959bn, and Lower-Tier spot volumes increased 19.1% to $82.1bn. This is the highest spot trading volume recorded on centralised exchanges since September 2022. Derivatives volumes increased by 32.6% in March to $2.77tn. The derivatives market now represents 72.7% of the entire crypto market (vs 69.0% in February). This is an all-time high for the market share of derivatives. https://medium.com/media/66a567f8b1608fc0dc8b133ecea3bf24/href Derivatives Market Share Reaches All-time High In March, the derivatives trading volume across centralised exchanges rose 32.6% to $2.77tn, the highest volume since September 2022. Meanwhile, the spot trading volume on centralised exchanges rose 10.8% to $1.04tn. The market dominance of derivatives trading on centralised exchanges has now risen to 72.7% from 69.0% in February, registering an all-time high for its market share. https://medium.com/media/cb26ed0694facf987a2b26be458f0389/href Daily CME Volumes Hits the Highest Levels Since FTX Collapse In March, CME’s BTC Futures volume rose 40.5% to $35.1bn, while CME’s BTC Micro Futures traded $697mn in monthly volume, up 46.2% from the month prior. This is the highest BTC futures volume traded in CME since May 2022. 276,542 BTC futures contracts were traded in March, up 30.2% since February. This only includes CME’s Bitcoin Futures, where the underlying asset is 5 Bitcoin. It excludes Bitcoin Micro Futures, where the underlying asset is 1/10th of a Bitcoin. https://medium.com/media/6449ffd8c21c54eac5f141f9f9d315f1/href Looking for additional market insight? Our monthly Exchange Review contains a summarised analysis of the latest movements in cryptocurrency markets. If you enjoyed this summary and would like to read more, then the full report is available to download below: Exchange Review Want to stay up to date with everything crypto? Subscribe to our mailing list (located at the bottom of the home page) and get our monthly research reports and insights delivered straight to your inbox. CCData’s suite of market-leading trade, order book, derivatives, blockchain, social, and historical data, spanning thousands of cryptocurrencies and 300+ exchanges, is also available via our API here: https://developers.cryptocompare.com Executive Summary: Exchange Review March 2023 was originally published in CCData on Medium, where people are continuing the conversation by highlighting and responding to this story.