In July 2023, the trading volume on centralized exchanges reached $1.7 trillion, representing a significant improvement compared to previous months. This article explores the key factors contributing to this growth.
Recovery of Trading Volumes on Exchanges
Centralized crypto exchanges recorded a total trading volume of $1.77 trillion in July, recovering to levels not seen since February. Market activity peaked around July 24, coinciding with significant rallies for BTC and ETH. As in previous months, overall CEX activity largely depended on market sentiment, benefiting from the bullish performance of most assets.
Market Behavior and Exchanges
The market also responded to potential altcoin recovery, boosting volumes for XRP and other previously forgotten assets. During peak trading times, both DEX and CEX were firing on all cylinders. Since the end of July, the share of DEXs has fallen to 23.5% as assets moved down from their peaks. Centralized exchanges became the key venue for buying spot BTC, and in July, market operators registered peak outflows, while reserves reached multi-year lows.
Leaders in Crypto Exchanges
Binance remained the leader in centralized exchange activity with a total monthly volume of $706 billion in July. Year-to-date, Binance saw its peak activity in January, driven by the momentum of the previous price records. However, despite the influx of trading volumes, Binance.com experienced a drop in rankings within the finance category.
Thus, July proved to be a significant month for centralized crypto exchanges, showcasing growth in trading volumes and changing market dynamics. The high trading activity and shift in volume distribution highlight the attention these platforms are commanding.
