The year 2023 marked a pivotal period of recovery and transformation for the cryptocurrency industry. Emerging from the prolonged bear market that spanned late 2022 into early 2023, the sector witnessed a resurgence fueled by key developments such as the Ethereum Shapella upgrade, the launch of BRC-20 tokens via Ordinals, and BlackRock’s filing for a spot Bitcoin ETF. These catalysts reignited investor confidence and set the stage for a robust market rebound.
As a critical component of the crypto ecosystem, exchanges serve as barometers for overall market health. Their trading volumes, market share shifts, and product innovations reflect broader trends in user behavior and institutional adoption.
TokenInsight has analyzed data from the top 10 centralized and decentralized exchanges (DEXs) to provide insights into 2023’s evolving landscape. While not all exchanges are included in this analysis, these leading platforms collectively account for over 95% of total market volume—offering a reliable proxy for industry-wide dynamics.
Total Annual Trading Volume Drops 16% to $34.26 Trillion
Despite signs of recovery, the total annual trading volume across the top 10 exchanges reached $34.26 trillion in 2023—a 16% decline compared to 2022. This drop reflects lingering caution following the 2022 market collapse, even as bullish sentiment returned.
The year began with a strong momentum shift. Bitcoin's price climbed from around $20,000 to over $26,000 within a month, driving daily trading volumes from $50 billion to nearly $150 billion. The peak occurred on March 14, when daily volume approached $250 billion—coinciding with a 16.6% surge in BTC’s price.
Q2 and Q3 saw relative stability, supported by positive catalysts: the successful Ethereum Shapella upgrade, the rise of BRC-20 tokens, and BlackRock’s spot Bitcoin ETF application. These events briefly pushed Bitcoin above $30,000 in June. Trading volume peaked again on July 14 at $208.6 billion.
However, as enthusiasm waned in August and September, BTC retreated to $26,000, and daily volume dipped to $20 billion by September 24.
Q4 brought renewed vigor. Anticipation around the SEC’s decision on spot Bitcoin ETF applications drove both prices and volumes upward. On November 10—after news broke that BlackRock had filed for a spot Ethereum ETF—daily trading volume exceeded $230 billion. By December 4, Bitcoin broke above $40,000 for the first time in 19 months.
👉 Discover how market momentum is shaping exchange performance in 2025.
Binance Maintains Dominance Despite Regulatory Headwinds
Binance retained its position as the largest exchange in 2023, though its market share declined from 54.2% at the start of the year to 48.7% by year-end—a reduction of over 5 percentage points.
For the first half of the year, Binance maintained a stable share between 52% and 60%. However, two major events triggered a temporary downturn: the end of its zero-fee Bitcoin trading promotion in March and the U.S. Securities and Exchange Commission (SEC) filing a 27-page lawsuit against the exchange in June.
Three months later, Binance’s share dipped below 50%. The most significant shock came on November 22, when CEO Changpeng Zhao announced his resignation. Market confidence briefly faltered, and Binance’s share dropped to 32% on November 24.
Nonetheless, recovery was swift. Within weeks, the platform stabilized and regained traction, ending the year near 48%. Notably, regulators did not raise concerns about user fund safety during this period, helping preserve trust.
OKX and Bybit emerged as primary beneficiaries of Binance’s dip, gaining 4.3% and 2.2% in market share respectively.
Spot vs. Derivatives: Market Leaders by Category
Breaking down annual trading volume reveals distinct leadership patterns between spot and derivatives markets.
Top 3 Spot Exchanges:
- Binance
- Upbit
- OKX
Top 3 Derivatives Exchanges:
- Binance
- OKX
- Bybit
Binance dominated both categories with a combined 53.7% market share—down from 60.1% in 2022—but still far ahead of competitors.
OKX strengthened its position across both segments, joining the top three in both spot and derivatives trading. Bybit followed closely in derivatives but lagged in spot volume.
Notably, Upbit ranked second in spot trading but failed to make the overall top three due to limited derivatives offerings. Similarly, Coinbase placed fourth in spot volume but only eighth overall due to minimal derivatives activity.
Exchanges like Bitget, KuCoin, Gate, Kraken, and Bitfinex maintained presence across both categories, while BitMEX and Deribit remained focused on derivatives.
Coinbase Stock Soars Despite Modest Volume Growth
Coinbase demonstrated a striking divergence between trading volume and stock performance in 2023.
Its stock (COIN) surged from $33.6 at the beginning of the year to $173.9 by December—a 418% increase—outperforming both the S&P 500 (+22.46%) and Nasdaq (+42.03%).
This dramatic rise reflects investor optimism about regulatory clarity and potential approval of spot Bitcoin ETFs rather than direct exchange performance.
While Coinbase’s trading volume remained relatively stable throughout the year—with slight dips in Q2 and Q3—it rebounded in Q4 alongside broader market activity, slightly surpassing its January levels.
Gate Leads in New Token Listings with 362 Additions
Gate distinguished itself through aggressive token listing strategies in 2023, adding 362 new cryptocurrencies—the highest among major centralized exchanges.
New listings correlated strongly with Bitcoin’s price movements:
- Q1–Q2: Increased innovation led to higher listing rates.
- May 14 peak: 21 new tokens launched in a single week.
- Q3: Slower pace due to cooling sentiment.
- Q4: Revival driven by BRC-20 token demand.
With a total of 1,871 listed tokens, Gate became a go-to platform for early access to emerging assets.
Trading Mix: Derivatives Dominate Most Platforms
Derivatives accounted for the majority of trading activity across most top exchanges:
- Bybit, Bitget, OKX: Over 90% of volume came from derivatives.
- Binance & KuCoin: 70–80% derivatives-driven.
- Gate, Huobi, Crypto.com: Balanced mix—30–40% spot.
- Kraken & Bitfinex: Spot-focused; Kraken derived over 80% of volume from spot trades.
Coinbase was excluded from derivatives analysis due to its limited offering and negligible trading volume in that segment.
Derivatives Market Share: Binance Still Leads
In derivatives specifically:
- Binance held 50.4% market share by year-end—down from 55.9%, but still dominant.
- OKX rose to 19.4%, gaining ~4% over the year.
- Bybit grew from 13.1% to 15.4%, closing in on OKX.
- Bitget declined from 9.7% to 8.8%, underperforming peers.
- Gate & KuCoin remained steady at ~2–3%.
Despite regulatory turbulence, Binance retained structural advantages in liquidity and product depth.
Open Interest Jumps 60% Amid Bitcoin Rally
Total open interest across top exchanges rose 60% from January to December 2023—reaching **$351.6 billion** on December 28 (BTC: $42,605), up from $193.7 billion on March 11 (BTC: $20,631).
Exchanges with notable growth:
- Kraken: +185% (from $76M to $220M)
- Bitfinex: +117%
- Deribit: +108%
- Bybit: +105%
In contrast:
- Gate: +33%
- KuCoin: +28%
- Bitget & BitMEX: Saw declines
This highlights shifting trader preferences toward platforms offering improved infrastructure and institutional-grade tools.
DEX Trading Volume Reaches $977.5 Billion
Decentralized exchanges recorded $977.5 billion in annual trading volume—representing 2.83% of total market activity.
Quarterly Trends:
- Q1: Highest DEX share at 2.98%
- Q2–Q3: Gradual decline
- Q4: Recovery due to Solana ecosystem momentum
Leading DEX performers:
- Orca (Solana): Market share reached 9.22%
- Raydium (Solana): Benefited from SOL price surge
- PancakeSwap: V3 launch boosted efficiency; daily volume quadrupled vs V2
- GMX: Struggled to grow beyond existing base
- dYdX: Market share fell nearly 10%
👉 Explore how decentralized platforms are evolving in response to market demands.
DEX Platform Tokens Shine: JOE Up Over 300%
While most centralized exchange tokens gained value in line with market recovery:
- FTT (+270%), MX (+>200%), BGB (+>200%) outperformed Bitcoin’s +166%
- FTT rally fueled by SEC Chair Gensler’s comment suggesting FTX could legally relaunch
- HT (Huobi) fell ~50%, indicating user sell-off despite high liquidity (volume/market cap ratio: 0.033)
For DEX tokens:
- JOE (Trader Joe): Up nearly 400%
- UNI (Uniswap): Only +45%, despite V4 proposal
- All DEX tokens showed high liquidity—suggesting stronger trader engagement than CEX counterparts
Note: dYdX uses off-chain order books (not fully decentralized); Osmosis operates as an independent Cosmos app chain.
FAQ
Q: Why did Binance lose market share despite remaining dominant?
A: Regulatory pressures and leadership changes temporarily weakened confidence, but strong infrastructure and global reach enabled rapid recovery.
Q: How significant is the shift toward derivatives trading?
A: Over 70% of volume on major platforms comes from derivatives—reflecting growing sophistication among traders seeking leverage and hedging tools.
Q: Are decentralized exchanges gaining traction?
A: DEXs held steady at ~2.8% market share in 2023. While not displacing CEXs yet, innovations like concentrated liquidity (e.g., PancakeSwap V3) are improving competitiveness.
Q: What drove FTT’s surprising price surge?
A: Positive regulatory commentary from SEC Chair Gary Gensler sparked speculation about FTX’s potential revival, triggering massive short squeezes and speculative buying.
Q: Why did Coinbase stock outperform its trading volume?
A: Investors priced in expectations of regulatory approval for spot Bitcoin ETFs and long-term institutional adoption—not just current exchange performance.
Q: Is high open interest bullish for crypto markets?
A: Yes—rising open interest alongside increasing prices signals fresh capital entering the market via futures contracts, typically reinforcing uptrends.
Final Outlook
Despite challenges—including regulatory scrutiny and leadership changes—centralized exchanges maintained user trust throughout 2023. The resilience of platforms like Binance and Coinbase underscores enduring demand for secure, liquid trading environments.
Meanwhile, DEXs continue refining their models, with Solana-based protocols gaining ground amid improved scalability and user experience.
Looking ahead to 2025, expect tighter integration between CeFi and DeFi ecosystems, greater institutional participation through regulated products like ETFs—and continued innovation in derivatives and token listings.
Core Keywords: cryptocurrency exchange, trading volume, market share, derivatives trading, decentralized exchange (DEX), spot trading, open interest, platform token