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The crypto market continued its downward trend in December with Bitcoin and Ethereum falling 3.68% and 7.72% to $16,531 and $1,195, respectively. This decline in price has coincided with falling trading activity across both spot and derivatives markets, exacerbated by the holiday period in December. As a result, spot trading volumes declined 48.4% to $544bn, while derivatives saw an even larger decline of 52.7% to $1.16tn.
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Key takeaways:
- Spot volume declined significantly in December to levels not seen since 2019. In December, total spot trading volumes decreased 48.4% to $544bn. Top-Tier spot volumes decreased 47.2% to $504bn, whilst Lower-Tier spot volumes decreased 59.7% to $40.2bn.
- Top-Tier exchanges now represent 92.6% of total spot volume based on CryptoCompare’s October 2022 Exchange Benchmark Ranking. This is the highest market share ever recorded by Top-Tier exchanges.
- 2022 proved to be a year of consolidation in the centralised exchange space. Binance ended the year as the clear winner, gradually improving its market share throughout 2022, starting with a 28.9% share in January and closing the year with a 51.1% share in December.
- In December, BTC-fiat/stablecoin trading volumes fell 45.0% to 11.9mn BTC. BTC-USDT trading specifically fell 48.3%, as a result, its market share fell to 56.1%, the lowest level recorded by Tether since May 2021.
- In December, derivatives trading volume on CME fell 49.2% to $14.2bn, recording the lowest trading volume since October 2020. BTC futures volume traded on the exchange fell 48.3% to $13.2bn while ETH futures volume declined 55.3% to $481mn. This was the lowest trading volume for ETH futures since March 2021.
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Spot Trading Volumes Dip to 2019 Levels
In December, total spot trading volumes decreased 48.4% to $544bn. Top-Tier spot volumes decreased 47.2% to $504bn, and Lower-Tier spot volumes decreased 59.7% to $40.2bn. This is one of the lowest periods of spot volume recorded since December 2019.
Top-Tier exchanges now represent 92.6% of total spot volume based on CryptoCompare’s October 2022 Exchange Benchmark Ranking. This is the highest market share Top-Tier exchanges have recorded in their history.
Tether’s BTC Market Share Falls to Lowest Level Since May 2021
Trading between BTC, fiat & stablecoins declined significantly in the last month of 2022,
coinciding with the overall fall in trading volume. In December, BTC-fiat/stablecoin volumes fell 45.0% to 11.9mn BTC. BTC-USDT trading specifically fell 48.3%, as a result, its market share fell to 56.1%, the lowest level since May 2021.
This has been largely due to BUSD’s gain in market share, which reached a record 26.4% in the last month of the year – BUSD volumes fell at a slower pace in December, declining 33.5% to 3.14mn BTC.
Binance Remains Market Leader in 2022 As Consolidation Continues
2022 proved to be a year of consolidation in the centralised exchange space. Binance ended the year as the clear winner, gradually improving its market share throughout 2022, starting with a 28.9% share in January and closing the year with a 51.1% share in December.
CME Derivatives Trading Volume Falls to Lowest Levels Since October 2020
In December, derivatives trading volume on CME fell 49.2% to $14.2bn, recording the lowest trading volume since October 2020. BTC futures volume traded on the exchange fell 48.3% to $13.2bn while ETH futures volume declined 55.3% to $481mn. This was the lowest trading volume for ETH futures since March 2021.
Options trading on the exchange also fell significantly in December with BTC options trading volume declining 57.4% to $225mn, the lowest figure recorded since July 2021. ETH options trading volume on CME also fell 41.5% to $2.00mn, recording the lowest trading volume in its history.
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