Bitcoin Rally Fuels 5th Consecutive Month of Growth in Feb 2024 Crypto Trading Volumes

The Bitcoin(BTC) rally to historical highs in February has caused a significant increasein spot trading turnover on the largest cryptocurrency exchanges. There has been a notable reshuffle among the top platforms: thanks to a sevenfoldincrease compared to February 2023, ByBit is currently the second-largestexchange in terms of volume, surpassing UpBit, OKX, and Coinbase.

Crypto Spot Volumes Growsfor 5 Months, ByBit Becomes the Second-Largest Exchange

AlthoughFebruary was a shorter month in terms of trading sessions, the dynamic Bitcoinrally and the test of historic highs above $69,000 provided tremendous fuel forthe growth of trading activity indicators.

This isalso evident from the spot volumes of the ten largest exchanges, whose turnovergrew 5% from the $916 billion reported in January to nearly $960 billion inFebruary. The result marks the fifth consecutive month of growth and asignificant improvement compared to February 2023. On a year-over-year (YoY)basis, volumes jumped 22%, growing from $783 billion.

"In February, the combined spot and derivatives trading volume on centralized exchanges rose 2.28% to $4.73tn as trading activity remains at a heightened level with Bitcoin nearing new all-time highs," CCData commented in its newest volume report.

There wasalso a reshuffle among the top five exchanges regarding volume. ByBit jumped tosecond place, growing 16% month-over-month and an astonishing 708% YoY,reaching a volume of $97.4 billion. As a result, it overtook Upbit and OKX,whose monthly volumes slid 13-14%. Coinbase remains in fifth place with aresult of $73 billion.

"The exchange also recorded its highest-ever daily spot trading volume onFebruary 28th, trading $8.58 billion," CCData added.

Thesechanges significantly increased ByBit's share of the entire spot trading market, which currently stands at 10%. Binance remains the undisputed leader, and its share grew by four percentage points compared to January. As aresult, Binance's turnover currently accounts for more than half of the spotmarket.

Annual Volume Growth forMost Exchanges

Binance isthe only exchange that experienced a decline in volume, dropping modestly by 7% compared to February 2023. However, other platforms record high growth rates.Apart from ByBit, which surged over 700% as mentioned earlier, Huobialso saw an almost threefold increase in volume, and Bitfinex doubled its trading activity.

The result increased from $13 billion to over $47 billion for Huobi, while it grew from $4 billion to nearly $9 billion for Bitfinex.

The factthat we are almost halfway through March and the Bitcoin price is still testingnew historical highs above $70,000 suggests that trading volumes of the largestexchanges will record increases this month.

Inparticular, inflows to new ETF funds continue to grow, and Grayscale wants toadd another wave of fresh demand with its newest Mini Bitcoin Trust ETF,offering tax-free crypto exposure.

Moreover,the market eagerly awaits the halving event, which is set to take place in justover a month. In the past, halvings have caused significant price jumps forBitcoin, and analysts are already speculating that it may soon reach six-figurevalues.

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Crypto Exchanges Hit New Record, Leader Gains 600% in a Year

After astrong year-end, the spot volumes of the largest cryptocurrencyexchanges recorded only modest monthly gains, averaging 3%. However, comparingstatistics from January 2024 with the same period twelve months earlier, we seethat the total volume grew 23% to $915.84 billion. In the case of the topperformer, the jump was as much as sixfold.

Binance Remains theUnquestioned Leader with a 49% Market Share

FinanceMagnates Intelligenceanalyzes spot volumes for the top 10 cryptocurrency exchanges each month,checking how the dynamics of the digital asset market change. As in recentmonths, Binance unquestionably holds the leading position, with volumesamounting to $446.05 billion in January, representing an increase of 3%compared to$432.65 billion reported in December.

Upbitremained in second place as last month with $91.79 billion, and OKX completedthe podium with a volume of $85.44 billion, experiencing a monthly decrease of 2%.However, it recorded a jump of 128% on an annual scale.

Bybitreclaimed the fourth spot with $82.03 billion, and Coinbase rounded out the top5, reaching $75.85 billion. The composition of the leaderboard remainsunchanged over the past few months, with no changes in the ranking compared toDecember. Although monthly volumes increased modestly and decreased for someexchanges, the annual average growth rate is much more satisfactory at 23%.

"Trading volumes remain at a heightened level, with spot volumes In the last couple ofmonths growing to levels not seen since 2022, driven by the approval of spot Bitcoin ETFs in the US," CCData researches commented in the recent report.

Crypto Exchanges SeeSignificant Yearly Growth, ByBit Leads

If ourranking were based on the percentage growth of volume on an annual basis,ByBit, Huobi, and OKX would be on the podium.

ByBitincreased its volumes compared to January 2023, rising by 635% from $11.45 billion. The jump coincides with exchange's 5thanniversary and surpasses the milestone of 20 million registered users.

Huobiincreased its turnover more than threefold, from $11.65 billion to nearly $60billion last month. In the case of OKX, the increase was 128%, from $38.29billion.

Two factorsinfluenced the significant increase in retail investor activity as clients ofthese exchanges: firstly, much higher cryptocurrency prices than in January2013, and secondly, the euphoria first sparked by the anticipation and then theapproval of the first spot ETFs on Bitcoin.

This isconfirmed by the on-chain BTC volumes themselves, which increased to a record$1.21 trillion, the highest level since September 2022. Due to the Bitcoin halving planned in two months, network activity may continue to remain at high levels, along with the volumes.

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