Global Spot Crypto Trading Climbs 142% Year-Over-Year to $2.1T
The
cryptocurrency market witnessed extraordinary trading activity in December
2024, with total spot trading volume across major exchanges reaching $2.14
trillion, marking an 8% increase from November’s $1.99 trillion and a
staggering 142% year-over-year growth.
It’s no
accident that this aligned with Bitcoin’s historic highs on the price chart, reaching
levels above $108,000.
Crypto Exchange Trading
Volume Surges to $2.1T in December 2024
Binance
maintained its dominant position, commanding 47% of the market share with $1
trillion in trading volume. The exchange saw a modest 1% month-over-month
increase but demonstrated remarkable year-over-year growth of 131%.
South
Korea’s Upbit and ByBit demonstrated exceptional performance, recording monthly
growth of 21% and 20%, respectively. Both exchanges achieved impressive
year-over-year growth exceeding 200%, with ByBit leading at 214% and Upbit
following at 209%.
Coinbase,
the leading U.S. exchange, maintained steady growth with a 9% monthly increase
and 174% year-over-year expansion, securing 9% of the market share. OKX showed
resilience with a 5% monthly growth and 103% yearly increase, holding 8% of the
market.
Most
exchanges reported positive monthly growth, with only Bitstamp showing a
decline of 14%. However, Bitstamp still managed an impressive 174%
year-over-year increase. The overall market demonstrated robust health, with
the cumulative volume of the top 10 exchanges showing an 8% monthly increase
and 142% yearly growth.
The
significant volume increase reflects the continued maturation of the
cryptocurrency market and sustained institutional interest throughout December
2024, building
upon the momentum from November’s strong performance.
Bitcoin Hits Record
Volumes amid Sky-High Prices
Daily
trading volumes have reached near-record levels, though they still fall short
of the nearly $4 trillion peak seen in May 2021. This surge can be attributed
to Bitcoin’s 37% rally in November and an additional 16% gain in December.
Despite
losing December’s gains and ending the month slightly down, Bitcoin’s price has
consistently remained above $90,000 for the past two months. This stability has
spurred significant activity among retail and institutional investors alike.
In
my previous analysis, I explained the recent price dip, primarily driven by
forecasts that the U.S. Federal Reserve may slow the pace of interest rate
cuts. Another contributing factor was news of the government’s intent to
liquidate over 69,000 BTC seized from Silk Road.
“There
is a rumor that the recent market dump was initiated after the Department of
Justice (DoJ) began selling some of its Silk Road Bitcoin holdings. One of the
suspected wallet IDs has been identified,” Paul Howard, Senior Director at
Wincent, told Finance Magnates. “As mentioned previously, this month is
expected to be volatile, particularly as we approach January 20th, the
inauguration date for President Trump. Volatility, however, creates
opportunities for trading.”
From a
technical perspective, Bitcoin remains safe above $90,000, with any dips below
this threshold viewed as buying opportunities. Analysts are optimistic about
Bitcoin’s long-term trajectory, predicting significant price increases by 2025.
While
some project a target of $150,000, others believe it could soar as high as
$200,000.
This article was written by Damian Chmiel at www.financemagnates.com.