Record Trading Activity on Centralized Exchanges Achieved in November

In November 2024, the crypto market soared, with centralized exchanges (CEX) witnessing unprecedented trading volumes.

Recording a combined surge of 101% in both spot and derivatives trading, CEX garnered an astounding 10.4 trillion dollars in transaction volume for the month of November.

Growth of trading volumes on CEX

CEX’s spot trading climbed by 128%, hitting 3.43 trillion dollars, marking it as the second-largest monthly volume since May 2021’s zenith. A historic moment occurred on November 12, the daily spot trading soared to 221 billion dollars, the highest daily volume CEX has ever seen.

Similarly, derivative trading climbed sharply by 89.4%, with volumes reaching 6.99 trillion dollars, outdoing the prior high set in March 2024.

Yet the proportion of the derivatives market on CEX dipped to 67.1%, a decrease from 70% in the preceding month, influenced by increased spot accumulation and price rallies in core digital currencies.

Having cornered the market with a 39.1% slice and a rise in spot trading volumes to 979.1 billion dollars, Binance continued to top the charts among CEX platforms in November—a 130.9% leap from October.

Remaining steadfast as the runner-up, Crypto.com entrenched its market status with an 11.4% share and a spot trading tally of 286.1 billion dollars—up 91.5% from the prior month.

Upbit, sliding into the third position, grasped a 9.3% market share and managed a hefty 231.8 billion dollars in trades, a staggering 387.8% jump relative to October’s figures. The rest of the top 10 platforms collectively held sway over 40.2% of the market in November.

Factors influencing growth

Numerous factors have propelled CEX trading volumes:

• Institutional adoption: A marked increase in institutional interest has pumped up trading volumes noticeably.
• Uptick in cryptocurrency prices: A bullish trend in key digital asset prices has incited heightened trading fervor, as investors seek to leverage market swings. Check out criptovalute.
• CEX platform innovation: The advent of novel functionalities and a diversification of tradable assets have brought more participants into the fray.

Comparison between CEX and DEX

While decentralized exchanges (DEX) have seen growth, CEX remain dominant. DEX’s portion of the market shrank to a mere 3% in November, with a 29 billion dollar trading volume, underlining that although decentralized options are on the rise, CEX are still the preferred hub for most traders, favored for their robust liquidity, ease of use, and broader service offerings.

This surge in CEX trading volumes points to a maturing cryptocurrency market with more active engagement from both individual and institutional investors. The growth, however, underscores the need for stringent regulation and enhanced security to safeguard investors and stabilize the market.

To sum up, November 2024 signifies a milestone month for CEX trading platforms, emphasizing their escalating significance in the global economic sphere. With institutional engagement intensifying and continuous strides in innovation, CEX are poised to maintain their pivotal role in cryptocurrency trading.