Daily trading volumes on centralized cryptocurrency exchanges have reached highest levels 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. That’s up from a low of about $24 billion in early February.
Daily trading volume has only surpassed this point for less than two months in history, most of that time during the 2021 bull market when Bitcoin first peaked at $69,000.
While daily trading volume has increased dramatically over the past few days, monthly trading volume has been trending upward over the past few months. In December 2023, the exchange’s monthly trading volume surpassed $1 trillion for the first time since the end of 2022.
Most trading takes place on Binance, with UpBit, OKX, and Coinbase being the next largest. According to data from The Block, Binance holds a market share of approximately 43% of all exchanges.
Trading volume increased following the launch of nine new spot Bitcoin ETFs and the conversion of the Grayscale Bitcoin Trust into ETFs. These ETFs had net inflows of approximately 170,000 BTC, or $11.4 billion worth. Total assets under management for all ETFs exceed $50 billion, and cumulative trading volume is expected to soon exceed $100 billion.
This interest pushed the price of Bitcoin back to all-time highs. The cryptocurrency briefly surpassed its all-time high of $69,000 earlier this week, but remains slightly lower following a sudden sell-off.
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About the author
Tim is the editor-in-chief of The Block. Before joining The Block, Tim worked as a news editor at Decrypt. He holds a BA in Philosophy from York University and studied News Journalism at Press Association Training. X Follow him at @Timccopeland