TokenInsight: Crypto Exchange 2023 Annual Report

Source: TokenInsight

2023 is a year of rest and accumulation for the Crypto industry. From mid-2022 to early 2023, we truly experienced a wave of desperate bear market, but then there was a lot of good news, such as the completion of the Ethereum Shapella upgrade, the launch of BRC-20 Ordinal, and BlackRock’s submission of Bitcoin spot ETF applications, etc., nourish the hearts of traders like spring rain, and the entire market is gradually recovering. As one of the most critical components of the cryptocurrency industry, changes in exchange volume and market share directly reflect the rise and fall of the entire industry.

TokenInsight, as a rating and research company in the Crypto industry, has been tracking currency and exchange data. We summarized the data performance of the exchange industry this year and selected the top ten centralized exchanges and decentralized exchanges. We hope to understand the changes this year and the competition in the exchange market through the changes in data. Condition.

The following data is a summary of the top ten exchanges selected by TokenInsight and does not include the total trading volume data of all exchanges. There are two main reasons for this operation

• There are so many exchanges in the Crypto industry that it is almost impossible to collect data from all exchanges< /p>

• The top ten exchanges we selected can account for more than 95% of the market share, so they can almost reflect the overall market situation

The annual trading volume of the Top 10 exchanges in 2023 will be US$34.26 trillion, a decrease of approximately 16% from 2022



In early 2023, the entire crypto market began to pick up, and the price of Bitcoin began to rise slowly. Trading volume quickly rose from $50 billion to about $150 billion, nearly tripling in one month. The peak of daily trading volume in Q1 occurred on March 14, approaching $250 billion. On that day, the price of Bitcoin surged 16.6% in 24 hours, from $20,000 to over $26,000.


The entire market stabilized in Q2 and Q3, but declined slightly. Good news such as the successful completion of the Ethereum Shapella upgrade, the successful minting of Ordinals, and BlackRock's submission of a Bitcoin spot ETF application inspired investors' trading enthusiasm, causing Bitcoin prices to briefly exceed $30,000 in late June. Daily trading volume peaked on July 14 at $208.6 billion. But as the Ordinals and Bitcoin ETF craze faded, Bitcoin prices fell back to $26,000 in August. Daily trading volume also declined, reaching a low of approximately $20 billion (September 24).

In October, as the final reply date for the Bitcoin spot ETF application approached, traders were confident in the approval of the Bitcoin spot ETF, and the entire market was enthusiastic about trading. Both Q4 trading volume and Bitcoin price increased significantly. The peak of daily trading volume occurred on November 10. After the news of BlackRock’s submission of Ethereum spot ETF application was announced, the market’s daily trading volume exceeded US$230 billion. Subsequently, catalyzed by the accumulated positive sentiment, Bitcoin price finally exceeded $40,000 for the first time on December 4, hitting a 19-month high.

Binance’s market share decreased from 54.2% at the beginning of the year to 48.7%, a drop of more than 5% but still maintained its dominant position



In the first half of 2023, Binance 's market share has remained relatively stable, hovering between 52% and 60% on average. However, in March Binance’s Bitcoin zero-fee campaignended, and in June SEC filed a long-term lawsuit with the court. Binance's share began to suffer after the 27-page lawsuitwas filed against Binance. After 3 months, the share fell below 50%.

After Binance CEO Changpeng Zhao publicly released his resignation letter on November 22, Binance’s market position was briefly impacted, falling to 32% on the 24th of the same month. However, it soon returned to stability and gradually rose to above 45%. Binance’s market share held steady at around 48% at the end of the year. After this incident, Binance’s market share fell by only 5%, which was better than market expectations. Regulators did not accuse users of asset security-related issues, indicating that the market and users still have confidence in Binance.

Among the changes in the entire cryptocurrency exchange market structure, OKX and Bybit have benefited the most, with their shares increasing by 4.3% and 2.2% respectively.

The top three spots in total annual trading volume are  Binance, Upbit  and  OKX; derivatives The top three are  Binance, OKX  and  Bybit



Breaking down the total annual trading volume into spot and derivatives, Binance ranked with 53.7% of spot and derivatives. Derivatives trading share firmly occupies the first position in the market. Notably, this number stood at 60.1% in 2022, a decrease of almost 6.5%. Although Binance has experienced the impact of the above-mentioned major events, it still maintains a strong absolute advantage compared with other exchanges.


OKX and Bybit rank second and third with market shares of 15.7% and 11.6% respectively. Among them, OKX ranks among the top three in terms of both spot and derivatives trading volume. Upbit ranks second in spot trading volume, but because its cryptocurrency derivatives trading volume exceeds spot trading by a large amount, it does not enter the list of total trading volume. Similarly, Coinbase ranks fourth in spot trading volume, but its derivatives trading volume is too small, so it ranks only eighth in total trading volume.

Bybit, Bitget, KuCoin, Gate, Kraken and Bitfinex are in the top ten on both lists. Upbit and Coinbase only make the top 10 spot list, while BitMEX and Deribit only make the top 10 derivatives list.

Coinbase The stock price rose much more than the trading volume fluctuated



Coinbase's stock price rose from $33.6 at the beginning of 2023 to $173.9 at the end of the year, an increase of approximately 418%. The S&P 500 has gained 22.46% in 2023, while the Nasdaq has gained 42.03%. COIN's market performance has been significantly better than most stocks thanks to the recovery in the crypto market.


Meanwhile, Coinbase’s trading volume has been generally stable throughout 2023. Although trading volumes declined slightly in the second and third quarters, Coinbase's trading volumes have rebounded to higher levels and are slightly higher than at the beginning of the year as investor enthusiasm for trading increased at the end of the year.

2023  Gate New tokens  362, the total number of online currencies reaches < em> 1,871, far exceeding other centralized exchanges



In 2023, Gate added 362 tokens throughout the year. The number of new tokens added every week is consistent with the price fluctuation trend of Bitcoin. In Q1 and Q2, as the industry picked up, a large number of new crypto assets emerged in the market, and the number of newly listed coins on Gate reached its peak (21) in the week of 5.14.

The number of new coins in Q3 Gate has dropped significantly. However, with the popularity of the BRC-20 ecosystem in Q4, many BRC-20 assets have been born in the market, and the number of newly listed coins has once again returned to higher level.

Bybit, Bitget  and  OKX  are mainly derivatives transactions, accounting for  90% Above, while  Kraken  mainly focuses on spot transactions



The above chart shows the proportion of spot transactions and derivatives transactions on the exchange. In 2023, Bybit, Bitget, and OKX are the top 10 exchanges focused on derivatives trading, with approximately 91% of trading volume coming from derivatives trading.

Although Binance and KuCoin do not rely on derivatives as much as they do, most of their transactions are still based on derivatives, and derivatives transactions account for about 70% to 80%.

Gate, Huobi and Cryptocom are relatively in the middle, with spot volume contributions ranging from 30% to 40%. In comparison, Bitfinex and Kraken rely more heavily on their spot. Among them, more than 80% of Kraken’s trading volume in 2023 will come from spot transactions.

It is important to note that as of now, the Coinbase Deriative exchange offers fewer derivatives and has too small a trading volume. Therefore, we do not include Coinbase in our calculations here.

Binance still maintains its dominant position with a share of 50.4%, and OKX’s market share rose to 19.4%



In derivatives, Binance’s share increased from The 55.9% at the beginning of the year dropped to 50.4% at the end of the year, but the performance was still strong. Despite experiencing the most significant regulatory event in history, its share fell only 5.5%, outperforming market expectations.

As of the end of the year, OKX’s market share reached 19.4%, an increase of approximately 4% from the beginning of the year. As for Bybit and Bitget, the share of the two exchanges at the beginning of the year was not much different, at 13.1% and 9.7% respectively. By the end of the year, Bybit's share rose to 15.4%, and Dayou and OKX were competing with each other. On the other hand, Bitget's performance was not satisfactory, with its share at the end of the year being only 8.8%.

Gate and Kucoin performed steadily throughout the year, with their shares basically stable at around 2 to 3%.

As the price of Bitcoin doubled, the amount of open interest increased to  $35 billion USD, an increase of  60% compared to the beginning of the year. em>



As of the end of 2023, the total daily open interest of the top 10 exchanges has increased by 60% compared with the beginning of the same year (January 1), and the fluctuation behavior is highly correlated with the price of Bitcoin.

The lowest daily open interest in 2023 occurred on March 11 (Bitcoin price $20,631) at $19.37 billion. The highest daily open interest occurred on December 28 (Bitcoin price $42,605), reaching a high of $35.16 billion, achieving a massive growth of 81.5% (Bitcoin market cap doubled, growing by 107%).

Based on the breakdown of exchanges, Bitfinex, Kraken, Deribit, and Bybit all achieved over 100% growth in open interest. Among them, Kraken has the highest growth, reaching 185%, growing from US$76 million at the beginning of the year to US$220 million.

In comparison, although Gate and Kucoin only grew by 33% and 28% respectively, their performance is also remarkable compared to Bitget and BitMex, whose open interest is on a downward trend. .

Top 10 DEX The total annual trading volume is  977.5 billion, of which  Orca  The biggest increase



With the surge in SOL prices at the end of the year, the Solana ecosystem has attracted market attention again. As the mainstream exchanges in the Solana ecosystem, Orca and Raydium have made huge profits in this process, and their market shares have increased to varying degrees. Among them, Orca had a market share of 9.22% at the end of the year.

In April 2023, with the launch of PancakeSwap V3 , the functions of PancakeSwap have been further improved. By Q4, the average single-day trading volume of V3 was more than 4 times that of V2. Therefore, PancakeSwap’s market share increased by 5.1% overall in the past year.

In contrast, GMX and dYdX performed less well in 2023. The two exchanges increased their market share by 28.4% and 6.7% respectively in 2022. However, by 2023, GMX seems to be barely able to maintain its original market share, while dYdX has fallen by nearly 10%, which is disappointing.

DEX The market share for the whole year was  2.83%, which remained stable overall



DEX’s 2023 performance in terms of trading volume and market share Performance remained basically stable, with a full-year market share of approximately 2.83%.

In Q1, DEX had the highest share at 2.98%. At the same time, Q1 is also the quarter with the largest transaction volume. However, in the following two quarters, both transaction volume and share gradually shrank; although both increased in Q4 as the market recovered, the overall proportion did not change much.

It can be seen from the trend that although Binance faced constant troubles with US regulatory agencies last year, and Changpeng Zhao resigned as Binance CEO for this reason, traders do not seem to have lost confidence in centralized exchanges. . Especially after settling with multiple U.S. regulatory agencies, Binance remains firmly at the top of the industry, with a 32.6% share ahead of the second place. These events have not had as huge an impact on the market landscape as the FTX crash in 2022, and traders still tend to choose safer centralized exchanges.

Among the exchange platform coins,  FTT MX BGB  have increased by more than  200%; CET  and  HT  declined, and HT  dropped by  50%



As the market gradually recovers, the platform coins of most centralized exchanges have experienced increases of varying magnitudes. Among them, FTT, MX and BGB< span style="text-align: justify;"> 's increases exceeded 200%, which was higher than BTC's increase during this period (166%).

It is worth noting that FTT has increased by as much as 270%. This is mainly due to the fact that in November, SEC Chairman Gary Gensler publicly stated that “restarting FTX is possible if done within the bounds of the law.” As soon as this news came out, FTT rose by more than 240% in two weeks. Subsequently, as the FTX debtors reached a settlement with the FTX Joint Official Liquidator, the price of FTT also experienced further gains.

From the perspective of the ratio of trading volume/market capitalization, the higher the ratio, the higher the liquidity. A ratio of <0.01 for MX, GT, OKB and CET means they have lower liquidity and higher slippage. Although the ratio of HT is only 0.033 and the liquidity is very high, the price of HT has dropped by about 50%. It can be seen that most traders are selling off their HT holdings in large quantities, which is not a big deal for HTX. Good news.

Among the decentralized exchange platform coins,  JOE  led the way, with an increase of more than  300%; only  BSW  ;Falled



Similar to centralized exchange platform coins, the prices of decentralized exchange platform coins will also increase to varying degrees in 2023, except for BSW. Trader Joe's has been the biggest performer, with JOE up nearly 400% over the past year. The industry leader UNI's increase was only 45%, which is not outstanding in comparison. Although Uniswap Labs proposed a draft version of V4 in June, it did not cause any waves in the market, and the price of UNI did not increase as expected.

Judging from the ratio of trading volume/market capitalization, all decentralized exchange platform coins have high liquidity. It can be seen that traders are more inclined to trade the platform coins of decentralized exchanges than the platform coins of centralized exchanges, although the returns are not necessarily higher than trading the former.

It should be noted that dYdX uses off-chain order books and matching engines but settles on-chain, so it is not a fully decentralized exchange.  Osmosis is a Cosmos application chain with independent nodes, while other projects are DApps (smart contracts) deployed on the public chain.