Daily trading volume on centralized crypto exchanges has reached a high not seen since November 2021.
The seven-day moving average for daily trading volume across a wide range of centralized exchanges reached $97.4 billion on March 6, according to The Block’s Data Dashboard. This is up from lows of around $24 billion in early February.
Daily exchange volume has only been above this point for less than two months in its history, with most of that time coming during the bull market of 2021 — when bitcoin first peaked at $69,000.
While daily trading volume has rapidly increased over the last few days, monthly trading volume has been on the rise for the last few months. In December 2023, monthly volume on exchanges cracked the $1 trillion mark for the first time since late 2022.
The majority of the trading is taking place on Binance, with UpBit, OKX and Coinbase next in size. Binance has around a 43% market share among all exchanges, according to The Block’s data.
The rise in volume has come around the time of the launch of 9 new spot bitcoin ETFs and the conversion of the Grayscale Bitcoin Trust to an ETF. These ETFs have seen a net inflow of around 170,000 BTC, worth $11.4 billion. The total assets under management for all the ETFs has risen above $50 billion, while cumulative volumes are soon set to hit the $100 billion mark.
This attention has pushed bitcoin’s price back to record highs. The cryptocurrency briefly broke past its all-time high of $69,000 earlier this week but remains slightly below it following a sudden selloff.
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About Author
Tim is the Editor-In-Chief of The Block. Prior to joining The Block, Tim was a news editor at Decrypt. He has earned a bachelor’s degree in philosophy from the University of York and studied news journalism at Press Association Training. Follow him on X @Timccopeland.