Spot trading volume exceeds $2.8T in Q1 2023

FTX fell in 2022 and wiped out billions of dollars from the crypto market causing fear and worries to spread across the market through Q3 and Q4 of 2022. This was heightened as months earlier, Terra-Luna imploded resulting in tens of billions of dollars lost. However, there seems to be a comeback for crypto traders in 2023.

A report by Coingecko revealed “Spot trading volume across the top 10 crypto exchanges totaled $2.8 trillion for 2023 Q1’. This represents an increase of 18.1% from Q4, 2022. 

Spot trading refers to buying or selling of digital assets for immediate delivery, such as Bitcoin, Ethereum, or other cryptocurrencies. It entails purchasing or selling cryptocurrencies, with payment often occurring within a short amount of time unlike in derivatives trading, in which traders speculate on an underlying asset’s price changes without actually owning it. 

Spot trading is possible on cryptocurrency exchanges, which charge a fee for each deal made on their platform. Individual investors as well as professional traders frequently use it.

Monthly increase from January to March

Coingecko also revealed that the total monthly spot trading volume on the top ten crypto exchanges in Q1, 2023 grew from $0.8 trillion in January to $0.9 trillion in February to $1.0 trillion in March. 

In contrast with Q4 of 2022, it was $0.8 trillion, $1 trillion, and $0.5 trillion in October, November, and December respectively, showing that the last time the trading volume reached $1 trillion was in H2 of 2022. 

Another pattern noticed was that the ratio of the trading CEX to DEX from January to March 2023 stayed above 90%. And while the operations of regulators globally affected CEXs, DEXs grew by 33.4% beating CEXs which did at 16.9% in Q1 of 2023. 

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