In December 2023, the monthly spot trading volume in the cryptocurrency market skyrocketed, surpassing a remarkable $1 trillion. This achievement marked a significant milestone, as it had been over a year since such substantial volume levels were reached.
Data meticulously compiled by The Block revealed that the total exchange volume for the month reached an impressive $1.1 trillion. The last instance of monthly spot trading volume exceeding the $1 trillion mark was noted in September 2022, totaling $1.03 trillion.
The December 2023 figures not only signify a noteworthy resurgence but also establish a new monthly record since May 2022, when the trading volume peaked at an impressive $1.35 trillion.
Unsurprisingly, Binance, the leading cryptocurrency exchange, played a pivotal role in this surge, contributing 39.3% to the total volume for December. In terms of US dollars, Binance's share amounted to a staggering $432.7 billion.
Securing the second position was Upbit, a South Korea-based crypto exchange, with an 8.3% share, equivalent to $91.8 billion. Following closely was OKX at 8%, contributing a total of $87.5 billion.
While Binance has traditionally dominated as the largest spot crypto exchange by trading volume, its market share has experienced a decline due to increased regulatory scrutiny. In contrast, both Upbit and OKX have witnessed a rise in their market share during this period.
This surge in trading activity aligns with heightened anticipation surrounding the potential approval of a spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC), expected as early as January 10. The cryptocurrency market is closely monitoring developments in regulatory decisions, which could significantly impact trading dynamics.
