Nov-Dec Trading Vol. Slump Sweeps Crypto Community, 8 Out of Top 10 Exchanges See Decline over 40%!
The world has finally sent away 2022 and entered the year of 2023. For the cryptocurrency community, however, we are not seeing much of the joy as people celebrate the new year. The trading volumes of various exchanges are terrible in this past December. Eight out of the Top Ten we have in this article saw decline over 40%. This is, obviously, a consequence of the FTX-Alameda Fraud has done to the market. Today, Fazzaco walks you through the November-December performance of these crypto exchanges.
Binance, the world's largest cryptocurrency exchange, had a total trading volume of $1.77 trillion in November, up 18% from $1.50 trillion in October. However, Binance's total trading volume fell below one trillion in December to $937.9 billion, down 47.01% from the same period last year in November. Binance has been very active lately after the FTX implosion, not only granted registration as a financial institution for management and trading in virtual currency by the Swedish Financial Supervisory Authority (Swedish FSA), expanding their presence to the seventh EU country, but also CZ Zhao announced that Binance will continue to expand its workforce by 15% to 30% in 2023.
OKX did pretty much like the performance of Binance and Coinbase, and they are one of the three exchanges out of the Top Ten that achieved growth in November before they plummeted in December. OKX's total trading volume in November was $371.831 billion, up slightly by 4.72% from $355.063 billion in October. In December, it fell sharply to $193.131 billion, a drop of 48.06%, the third largest decline in this article (after Uniswap (v3): -57.84%, and KuCoin: -53.61%). Ironically, the derivatives trading volume in November alone reached $329.778 billion, far exceeding the total trading volume in December.
Huobi Global's trading volume fell slightly in November, from $77.299 billion to $74.536 billion, but basically maintained normal. However, December's performance inevitably suffered a big impact due to the industry-wide decline, falling 43.59% to $42.01 billion.
In January, Huobi announced a partnership with Solaris to start offering crypto-to-fiat Visa debit cards.
As a leading U.S-based exchange, Coinbase became the only one in Fazzaco's survey that eased its downtrend in October. In November, Coinbase's trading volume soared by 30.44% month-on-month (from $46.763 billion in October to $60.999 billion in November). But Coinbase was not spared from the December crypto winter's curse, with only $34.906 billion, down 42.78% M-o-M.
Coinbase is not having their best time either. First, they got a $50 million penalty from the New York Department of Financial Services (NYDFS) for its AML failure; then, they were forced to downsize their workforce and close most of their Japanese business due to the industry downturn.
Although Crypto.com ranked low in the Top Ten in terms of absolute trading volume, they suffered the smallest decline this time. The November performance saw 16.01% drop from October. The December volume was $12.696 billion, down 25.62% from $17.07 billion in November.
In December, the exchange obtained a Payment Institution License from the Central Bank of Brazil. The license allows the company to continue offering regulated fiat wallet services in the country.
November-December Data of Five New Exchanges
Due to the violent turmoil in the crypto community in November, the bankrupt FTX was removed from the list, and the following five new exchanges were added to the survey, which also ranked in the Top Ten by total trading volume.
Among them, Bybit's total trading volume in December was $147.696 billion, down 47.33% from $280.418 billion in November; that of KuCoin Futures in December was $28.579 billion, down 32.18% from $42.138 billion in November; Uniswap (v3) had a total trading volume of $15.250 billion in December, down 57.84% from $36.168 billion in November, making it the exchange that saw the sharpest decline M-o-M; Kraken's total trading volume in December was $13.133 billion, down 40.38% from $22.027 billion in November; the total trading volume of KuCoin Exchange in December was $12.162 billion, down 53.61% from $26.215 billion in November, and it was also one of the only two exchanges in this survey that have fallen over 50%.
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