Trillion-Dollar Crypto Trade: Understanding the Latest CoinGecko Report

04/24/2023 22:55 • Tech Ticker • 148 views

According to the latest report by CoinGecko, the spot trading volume of the top 10 cryptocurrency exchanges in the first quarter of 2023 recorded $2.8 trillion, an increase of over 18% compared to the fourth quarter of 2022. Since the low point of $0.5 trillion in December 2022, monthly trading volume has also increased, but has not yet reached an average of $1 trillion. This number last appeared in the first half of 2022. Regulatory agencies around the world have increased their crackdown on CEX. Market participants flocked to DEX, promoting significant growth. Therefore, DEX’s popularity is about twice that of CEX. The report estimates that DEX increased by 33.4% in the first quarter of 2023, while CEX increased by 16.9%. However, the ratio of CEX to DEX trading volume remained above 90% during the same period.

Report: Cryptocurrency spot trading volume reached $2.8 trillion in the first quarter of 2023

In the ever-evolving world of cryptocurrencies, trade volumes and exchange trends serve as key indicators of market stability and growth. Recently, the highly reputable market insights provider, CoinGecko, released its latest report revealing that spot trading volume of the top 10 cryptocurrency exchanges in the first quarter of 2023 recorded $2.8 trillion, an increase of over 18% compared to the fourth quarter of 2022.

What Does the Latest CoinGecko Report Reveal?

The CoinGecko report indicates that since December 2022, the monthly trading volume has been on an upward trend, reaching $1 trillion in the first quarter of 2023. This marks a significant boost from the low point recorded in December 2022, where the trade volume was at an all-time low of $0.5 trillion. The report also revealed that the average monthly trading volume back in the first half of 2022 was at $1 trillion.

Why Is DEX More Popular than CEX?

Regulatory agencies around the world have increased their scrutiny on Centralized Exchanges (CEX) in a bid to safeguard investors’ interests. As a result, some market participants flocked to Decentralized Exchanges (DEX) in pursuit of more secure crypto trading. Hence, DEX’s popularity is almost twice that of CEX.
The report estimates that DEX increased by 33.4% in the first quarter of 2023, while CEX increased by 16.9%. However, the ratio of CEX to DEX trading volume remained above 90% during the same period.

Factors Contributing to the Growth of Trading Volume

The cryptocurrency market is volatile, but several factors are contributing to its growth in volume. One of the significant factors is the increase in global adoption of digital currencies, especially in countries like Nigeria and Turkey, where citizens use digital currencies to hedge against inflation.
The increasing use of crypto by institutional investors is another factor contributing to the rise. They are investing huge sums into cryptocurrency as an alternative to traditional investment options like bonds, stocks, and the US dollar. The report indicates that institutional investor adoption of cryptocurrencies has contributed greatly to the growth of monthly trading volumes in the first quarter of 2023.

Is Crypto Trading Safe?

The high volatility of cryptocurrencies has made some investors skeptical about trading in digital currencies. While cryptocurrencies present good investment opportunities, market participants should also exercise caution. They need to research and analyze market trends before venturing into cryptocurrency trading. It’s crucial to gain enough knowledge of the industry to make informed investing decisions.

Conclusion

The CoinGecko report indicates steady growth in monthly cryptocurrency trading volumes worldwide in the first quarter of 2023. It records a remarkable surge of $2.8 trillion in spot trading volume for the top 10 cryptocurrency exchanges, a massive 18% increase from the last quarter of 2022. With the regulatory scrutiny on CEX, more traders are moving to DEX, which enjoys a 90% trading volume ratio advantage. The cryptocurrency market is expanding, with increasing adoption and massive interest from institutional investors.
FAQs
Q. What is DEX in cryptocurrency trading?
A. DEX stands for Decentralized Exchange, which allows peer-to-peer crypto trading without any central authority controlling the transactions.
Q. Is crypto trading safe for investors?
A. While cryptocurrency trading presents a vast opportunity for investment, it also comes with high volatility. Investors should approach it cautiously, exercise due diligence, and research market trends before investing.
Q. What is the significance of the latest CoinGecko report on the cryptocurrency market?
A. The latest CoinGecko report is a key indicator of the trade volumes and exchanges trends that provide insight into market stability and growth. It offers useful information for industry participants, traders, investors, and regulators, creating an informed industry.

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