Crypto exchanges: Bybit ranks 2nd by spot volumes, Binance and OKX users more

The monthly change marks a 2.28% rise from previous figures, driven by growing interest as Bitcoin approaches new highs. Specifically, spot trading volumes experienced a 2.65% increase to $1.41 trillion, while derivatives trading grew by 2.12% to $3.32 trillion.

The report also highlights Binance’s stronger market presence after achieving its highest spot market share since August. Spot trading volumes on the leading crypto exchange surged by 15.5% to $505 billion, which is the highest figure recorded since the March 2023 banking crisis. On account of this, Binance’s spot market share has been raised from 31.8% to 35.7%.

According to the document, Bybit now ranks as the second-largest spot exchange by trading volume, with its spot trading volume up by 17.5% to $95.7 billion: a historic peak for the platform and surpassing other major exchanges like OKX and Coinbase for the first time.

CCData’s report also found that institutional interest appears to be shifting towards Ethereum, possibly in anticipation of the Denun upgrade and the potential launch of a spot Ethereum ETF. The Chicago Mercantile Exchange (CME) saw a 1.58% rise in total derivatives trading volume to $96.4 billion. Within this, Ethereum futures volume outpaced Bitcoin, growing by 3.25% to $17.1 billion and Ethereum options volume reaching an all-time high of $655 million.

Open interest and funding rates on centralized exchanges have also hit new highs, with open interest increasing by 54.9% to $49.3 billion. Binance, OKX, and Bybit, the top three derivatives exchanges by volume, all saw significant increases in open interest. This rise in open interest and funding rates, however, precedes a notable market correction, highlighted by a 14.6% decrease in Bitcoin’s value on March 5th after it reached a new all-time high.

Spot Volumes

Binance’s spot volume has risen to the highest level since the March 2023 banking crisis. In February, the spot trading volumes on Binance rose 15.5% to $505bn, recording the highest trading volume since the Silicon Valley Bank and subsequent USDC depeg in March 2023. The market share of the exchange among spot markets also rose from 31.8% to 35.7% in February, recording the exchange’s highest market share since August 2023.

Meanwhile, the derivatives trading volume on Binance rose 2.07% to $1.53tn in February as the exchange remained the largest trading venue with a market share of 46.2%. With the recent uptrend in trading volumes likely indicating the return of retail participants, Binance and other major exchanges are set to benefit from the heightened trading activity.

Institutional investors shift towards Ethereum

Institutional Investors Shift Focus Towards Ethereum As Options And Derivatives Outpace Bitcoin
In February, the total derivatives trading volume on CME rose 1.58% to $96.4bn. The BTC futures volumes on the exchange rose by 0.31% to $74.2bn, whereas the ETH futures volume on the exchange rose 3.25% to $17.1bn.

The BTC options volume traded on the exchange rose 8.21% to $1.70bn. Meanwhile, the ETH options volume traded on the exchange recorded an all-time high, rising 26.4% to $655mn. This could suggest that institutional participants are turning their attention to Ethereum ahead of the upcoming catalysts including the Dencun upgrade and a potential spot Ethereum ETF later in the year.

Open interest reaches new highs

In February, the open interest on derivatives exchanges continued to reach new highs as traders levered up as Bitcoin approached a new all-time high, rising 54.9% to $49.3bn. The three largest derivatives exchanges, Binance, OKX, and Bybit, all saw open interest on the exchange rise by 51.1%, 47.5% and 42.9% to $17.4bn, $5.90bn, and $10.7bn respectively.

OKX and Binance users more bullish

Across the three analysed exchanges, funding rates increased significantly compared to January, as the market sentiment remained positive with Bitcoin nearing its all-time high. The funding rate on the exchanges remained positive throughout the month, increasing steadily, highlighting the leverage in the market. Looking at the average funding rate, traders on OKX and Binance were more bullish with exchanges averaging a funding rate of 6.80% and 5.94% respectively.