The cryptocurrency market skilled vital development in November 2024, with centralized exchange platforms (CEX) reaching record trading volumes.
The mixed trading quantity of spot and derivatives on CEX elevated by 101%, reaching 10.4 trillion {dollars} within the month of November alone.
Growth of trading volumes on CEX
Spot trading on CEX noticed a rise of 128%, reaching 3.43 trillion {dollars}, marking the second highest month-to-month record because the peak of May 2021. On November 12, the each day quantity of spot trading hit 221 billion {dollars}, setting a brand new all-time excessive for each day exercise on CEX.
Derivative trading has additionally proven vital development, with an 89.4% improve bringing the amount to six.99 trillion {dollars}, surpassing the earlier record of March 2024.
However, the market share of derivatives on CEX has fallen to 67.1% from 71.1% the earlier month, as a result of improve in spot accumulation exercise and the surge in costs of predominant digital belongings.
Binance has maintained the main place amongst CEX, with a market share of 39.1% and a spot trading quantity of 979.1 billion {dollars} in November, recording a rise of 130.9% in comparison with October.
Crypto.com has consolidated its place because the second largest platform, with a market share of 11.4% and a spot trading quantity of 286.1 billion {dollars}, marking a rise of 91.5% in comparison with the earlier month.
Upbit ranked third, with a market share of 9.3% and a trading quantity of 231.8 billion {dollars}, recording a rise of 387.8% in comparison with October. The remaining platforms within the high 10 every held lower than 9% market share, with a mixed dominance of 40.2% in November.
Factors influencing development
The development of trading volumes on CEX will be attributed to a number of key elements:
- Institutional adoption: The rising curiosity from institutional traders has led to a big improve in trading volumes.
- Increase in costs of criptovalute: The surge in costs of main digital belongings has stimulated trading exercise, with traders seeking to capitalize on market actions.
- Innovations in CEX platforms: The exchange platforms have launched new options and expanded the vary of accessible belongings, attracting a bigger variety of merchants.
Comparison between CEX and DEX
Despite the expansion of decentralized platforms (DEX), CEX proceed to dominate the market. In November, the market share of DEX in comparison with CEX fell to three%, with a trading quantity of 29 billion {dollars}. This signifies that, regardless of the curiosity in decentralized options, CEX stay the primary alternative for nearly all of merchants, due to their superior liquidity, user-friendly interfaces, and a wider vary of companies.
The development pattern of trading volumes on CEX suggests a maturation of the cryptocurrency market, with better participation from each retail and institutional traders. However, this growth brings with it the necessity for extra rigorous regulation and superior safety measures to guard traders and guarantee market stability.
In conclusion, November 2024 represented a record month for trading on CEX platforms, highlighting the rising significance of those platforms within the world monetary panorama. With the rise in institutional adoption and steady innovation within the sector, CEX are destined to stay key gamers on the planet of cryptocurrency trading.
