Crypto Trading Volume Surged to an Impressive $37 Trillion in 2023, Spurred on by a Positive Q4 Performance: Report from CoinGecko

According to CoinGecko, the crypto market experienced an impressive 55% rise in its total market capitalization during Q4 2023, climbing from $1.1 trillion to $1.6 trillion. 2023 Annual Crypto Industry Report .

This notable increase was largely driven by a bullish enthusiasm generated by the prospects of obtaining regulatory endorsements. Most notably, Bitcoin, the leading cryptocurrency, saw its price jump significantly from $27,000 to $42,000 within the same quarter. Bitcoin ETFs It's worth mentioning that the U.S. Securities and Exchange Commission (SEC) recently granted approval for the launch of Spot Bitcoin Exchange-Traded Funds (ETFs), which ended months of speculation in the digital asset community.

Taking a broader perspective over the entire year of 2023, CoinGecko’s findings reveal remarkable growth in the crypto landscape, where the total market cap more than doubled from $832 billion at the beginning of the year. This substantial growth can mainly be attributed to Bitcoin’s resurgence, which showed an impressive 2.6 times increase.

The report also dives into the complex dynamics of the market, scrutinizing the performance of major players such as Bitcoin and Ethereum, along with insights into the decentralized finance (DeFi) and non-fungible token (NFT) sectors.

In terms of market performance, the total market cap experienced a notable increase of +108.1% in 2023, reaching $869 billion. Trading volume also saw significant improvement, with an average daily trading volume in Q4 of 2023 hitting $75.1 billion, reflecting a +91.9% rise quarter-over-quarter.

However, despite this overall uptick, the total annual daily trading volume has still dropped by -31.6% when compared to the figures of 2022. crypto market Examining Bitcoin, Ethereum, Solana, and NFTs

Bitcoin, often referred to as 'digital gold', had a stellar year, achieving a remarkable +155.2% increase overall, with Q4 alone marking a dramatic rise of +64.3% that boosted its price from $26,918 to $42,220. In fact, Bitcoin hit a peak of $44,004 in December, reaching heights not observed since April 2022.

Ethereum, the second-largest cryptocurrency by market value, concluded 2023 at $2,294, which translates to a solid gain of +90.5% over the year. The most significant increases for Ethereum were seen in Q1, with a +49.8% upswing from $1,196 to $1,792. After a period of consolidation in Q2 and Q3, Ethereum surged again, achieving a +36.4% increase in Q4, touching a yearly high of $2,376 in December.

Bitcoin, the pioneer of cryptocurrencies Solana (SOL) skyrocketed from $10.0 to an impressive $101.3, marking a staggering +917.3% increase. While the second and third quarters experienced a lull in price movements due to the liquidation of holdings by the FTX bankruptcy estate, Solana bounced back vigorously in Q4, reaching a peak of $121.5.

In terms of NFTs, trading volumes across the leading 10 chains totaled $11.8 billion in 2023. However, this represents a significant decrease, being less than half of the NFT trading volume recorded in 2022, which amounted to $26.3 billion.

Moreover, the findings suggest that despite regulatory hurdles faced by centralized exchanges (CEXs), they continued to dominate trading volumes throughout 2023. The ratio of CEX to DEX trading stood at an overwhelming 91.4%, underscoring the sustained popularity of centralized platforms. Additionally, the CEX to DEX derivatives ratio was an impressive 98.1%, revealing the market's preference for centralized exchange offerings, even amid challenges faced by major players like FTX and Binance.

In the realm of non-fungible tokens Bobby Ong, COO and co-founder of MetaversePost, stated, “2023 turned out to be a robust year for recovery within the crypto industry. Regulatory concerns were addressed, and the excesses of the past cycle were cleared away. As we move into 2024, the projects that have been developing during the bear market are fortifying crypto’s technological foundation and launching new applications. We look forward to seeing the upcoming advancements,”

As the crypto sector continues to evolve, this report lays the groundwork for future exploration and analysis of the ever-changing crypto landscape.

Securities and Exchange Commission CoinGecko .

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