Centralized crypto exchanges See rise in spot volumes
Trading volume on centralized crypto exchanges (CEX) has increased since the beginning of the year. Furthermore, the CEX revival comes just two months after a surge in withdrawals and outflows.
The findings were reported by industry analyst Wu Blockchain on February 13. The new data feeds into January activity on centralized crypto exchanges.
According to the report, spot trading on major exchanges rose 57.8% month-on-month in January. Upbit, BitMart and KuCoin saw the biggest increases in volume, with the first two more than doubling.
Last month, Binance, the world’s largest CEX, saw its spot trading volume increase 61.3%. In addition, Coinbase volumes rose 51.2% for the period.
Wu also noted that website traffic on the major centralized exchanges rose 4.5% in January from the previous month:
Centralized exchanges restore
There was a crypto exodus from centralized exchanges after the collapse of FTX in November. Investors became nervous and decided that self-storage was a safer option for their digital assets.
As a result, billions of dollars in crypto left CEXs during November and December.
In addition to spot volumes increasing, trading in crypto derivatives also increased in January. Derivatives are contracts such as futures, options and swaps that are based on the underlying asset.
Wu reported that derivatives trading on major exchanges rose 47.6% in January from the previous month. The three biggest increases were Phemex with 190%, Bybit with 98% and Gate which increased with 85%. The report noted that futures trading on Binance was up 60.5% in January from December levels.
However, the researcher cautioned that it was unclear how much of this volume was due to bot activity.
On 13 February, the analysis platform Glassnode in the chain reported that centralized outflows from exchanges were higher than inflows again.
Crypto Market Outlook
Crypto markets have continued to fall over the weekend. Furthermore, the total market capitalization was marginally down to $1.06 trillion at press time.
The markets have been consolidating over the last three weeks or so. However, solid resistance at slightly higher levels has suggested that a major pullback may be imminent.
Furthermore, the SEC’s crackdown on crypto stakes appears to have rattled sentiment.
Bitcoin (BTC) traded flat on the day at $21,849 at the time of writing. Meanwhile, Ethereum (ETH) had fallen 1%, falling to $1,519, according to CoinGecko.
Disclaimer
BeInCrypto has reached out to the company or person involved in the story for an official statement on the latest development, but has yet to hear back.
