By
Steve Muchoki
April 26th, 2024
The Binance crypto exchange had a monthly trading volume dominance of about 40 percent, representing $432 billion, despite the regulatory hurdles.
Amid the ongoing spot Bitcoin exchange-traded funds (ETFs) frenzy in the United States, cryptocurrency exchanges around the world have been among the biggest beneficiaries of heightened demand for digital assets. According to detailed market data analysis provided by The Block, the crypto monthly trading volume clocked above $1 trillion for the first time during the past twelve months in December 2023. Notably, the cryptocurrency monthly exchange volume has been increasing steadily since last September, coinciding with a profitable fourth quarter in Bitcoin (BTC) and the altcoin breakout.
From the data, it is evident that Binance continued to lead other centralized crypto exchanges in monthly traded volume despite the regulatory hurdles. During the fourth quarter of 2023, Binance agreed to pay a $4.3 billion fine to the United States government for violating anti-money laundering laws. Consequently, Binance founder Changpeng Zhao popularly known as CZ agreed to step down as part of the agreement with the US Department of Treasury.
Nonetheless, Binance continued to grow in user base, whereby the current CEO Richard Teng reported an annual growth of 30 percent YoY to over 170 million users. The notable Binance growth contributed to the $432 billion traded monthly volume posted in December.
Other top cryptocurrency exchanges that posted notable monthly trading volume in December include Upbit with about $91 billion, OKX with approximately $87 billion, and Coinbase Global Inc (NASDAQ: COIN) at around $69 billion.
Crypto Trading Volume Fueled by Spot Bitcoin ETF Frenzy
The notable growth of cryptocurrency trading volume has largely been attributed to the spot Bitcoin ETF frenzy in the United States. Moreover, it is a fact that an imminent approval can trigger trillions of dollars proliferating into the crypto industry in subsequent years. The United States Securities and Exchange Commission (SEC) is expected to issue a decision on the Ark 21Shares Bitcoin ETF by next week’s Wednesday, January 10. With experts forecasting a 90 percent approval chance of the spot Bitcoin ETF in the United States, the cryptocurrency trading volume will undeniably remain high in the coming weeks.
Meanwhile, crypto traders should remain cautious of a possible delay by the US SEC, which could lead to a sudden sell-off. Nonetheless, the US SEC could be risking more lawsuits by the dozen spot ETF applicants including BlackRock Inc. (NYSE: BLK). Additionally, the Biden administration would significantly benefit from the approval of spot Bitcoin ETF amid the upcoming presidential elections later this year. Moreover, there are more than 52 crypto investors in the United States that offer a solid voting bloc.
The cryptocurrency market is already in a bull market mood with the fourth Bitcoin halving expected to happen in April this year. As a result, cryptocurrency exchanges are expected to reap more profits amid the mass adoption of Web3 products and digital assets.