In the dynamic world of cryptocurrency, the South Korean exchange, Upbit has made headlines by overthrowing both Coinbase and OKX. First time in its history, Upbit has scaled past the aforementioned platforms in spot trading volume. Data published on Aug. 3 from CCData reveals that Upbit’s trading volume rose by a substantial 42.3% to $29.8 billion in July. A stark contrast can be observed in Coinbase and OKX’s performance as their volumes stumbled by 11.6% and 5.75% respectively. This led to Coinbase’s trading volume bottoming out to $28.6 billion and OKX to $29.0 billion.
In the context of trading volume, this market augmentation establishes Upbit in the second position after Binance. Binance, with trading volumes amounting to $208 billion, has been clinching the title of the largest platform for spot trading in crypto. However, Binance’s market share has been experiencing a downturn, dropping for the fifth consecutive month to just 40.4% – its lowest since August 2022.
On the other hand, despite the uplift in some exchange’s volumes, Centralized Exchanges (CEXs) have been witnessing their second-lowest trade volumes since 2021. Following the downfall of FTX in November 2022, traders started flocking to platforms like Binance or Decentralized Exchanges (DEXs). However, a number of lawsuits involving major players like Binance and Coinbase have put a damper on this shifting trend, causing trading volume on DEXs to surge by 444% by June 2023.
Although these figures position Upbit under the limelight, they also sneakily question the sustainability of this growth. The primary issue unravels when you consider that despite the rise in individual exchange volumes, CEXs have been noting a depressing decrease in trading volumes. Adding to this conundrum, some of them have been thrust into legal scrutiny, painting an uncertain future for their operations. Ultimately, this has resulted in trading volume taking a sharp turn towards DEXs, a diversion steered by the 444% rise in their figures.
The playing field still retains a considerable level of imbalance. Even as Upbit strides past Coinbase and OKX in trading volume, Binance continues to lead the path, albeit with a slowly shrinking lead. But with DEX market share surge and the slew of legal issues facing major CEXs, we’re left wondering – is this an era of evolution in the crypto trading world or a red flag for the otherwise dominant exchanges? Only time will reveal the actual trajectory. Until then, it’s a wait and watch game.
Source: Cointelegraph
