Author: TI Research
In the third quarter of 2024, the cryptocurrency market saw significant volatility. In early August, the unexpected interest rate hike by the Bank of Japan triggered the collapse of the yen carry trade, leading to turmoil in the global financial markets, and the cryptocurrency market experienced a significant sell-off. The surge in global financial market risk aversion led to a sharp drop in asset prices in a short period of time, with Bit once falling to $49,000. Additionally, large-scale forced liquidations in the market further exacerbated the selling pressure. However, with the Federal Reserve's interest rate cuts and the increase in global liquidity, investor sentiment gradually recovered, and the market rebounded by the end of the quarter, with Bit rebounding to $64,000.
In such a volatile market, how have the exchanges performed? We have timely brought you the Q3 2024 exchange report. In the report, we summarized the data performance of the exchange industry, selected the Top 10 centralized exchanges, and hope to help you understand the changes in the exchange market through the changes in the data.
The total trading volume of the top ten exchanges was $15.1 trillion, down 6.74% from the previous quarter
In the third quarter, the total trading volume of the top ten exchanges was $15.1 trillion, down 6.74% from the second quarter. The continued downward trend in the market was mainly influenced by global macroeconomic factors. However, after the Federal Reserve cut interest rates by 50 basis points, market sentiment began to turn positive. Given the improvement in sentiment and the macroeconomic environment, the trading volume is expected to rebound in the fourth quarter, possibly reaching $20 trillion.
In the third quarter, the price of Bit experienced significant volatility. After falling below $50,000 in early August, it quickly rebounded and closed the quarter at around $64,000. With the improvement in liquidity in the US and China, Bit is expected to rebound to over $70,000 in the fourth quarter and has a good chance of reaching a new all-time high.
Binance's market share has declined, but it still leads the market
In the third quarter, Binance's trading volume was close to $5.6 trillion, with its market share declining by 4.51% compared to the second quarter. Despite the decline, Binance still maintains its dominant position, with a market share of over 37%.
Among other exchanges, MEXC's market share grew significantly by 3.6%, followed by Bybit, which grew by 1.84% compared to the second quarter.
The spot trading volume share has declined for most exchanges, with only Bybit seeing an increase
In the third quarter, the share of spot trading volume compared to derivatives trading volume has declined for most exchanges. Bybit is the only exchange that has seen a slight increase in its spot trading volume share. Due to the continued price volatility, the market's focus has shifted to more speculative areas, particularly meme tokens, leading to a decline in spot trading volume across the exchanges.
Traders are increasingly inclined towards high-frequency derivatives trading, seeking faster returns in the face of heightened market volatility.
The total spot trading volume of the top ten exchanges was $2.7 trillion, down 21% from the previous quarter
In the third quarter of 2024, the spot market continued the downward trend from the second quarter, with daily trading activity declining from $37 billion in the second quarter to $29 billion in the third quarter. The total spot trading volume of the exchanges in the third quarter was approximately $2.7 trillion, down 21% from $3.4 trillion in the second quarter.
However, with the improvement in market sentiment and the increase in global liquidity, the spot trading volume is expected to rebound in the fourth quarter, possibly reaching the range of $3.5 trillion to $4 trillion.
Derivatives trading volume continued to decline, with a daily average trading volume below $150 billion
In the third quarter, the total derivatives trading volume was $12.8 trillion, down about 2.3% from $13.1 trillion in the previous quarter. The downward trend that started in the second quarter reflects the ongoing consolidation in the crypto market.
Except for the brief spike in early August due to macroeconomic volatility, the daily average trading volume has remained below $150 billion, on par with the second quarter level.
Binance ranks first in the market with a 30% share of open interest
In the third quarter, the market share of most exchanges declined, with Binance's share slightly decreasing by 0.25%, but it still maintained its leading market position. BingX saw the largest decline of 1.27%. HTX recorded the largest increase of 2.7%, followed by Gate with a 1.3% increase.
Affected by macroeconomic volatility, all exchanges saw a significant drop in open interest in early August. However, the decline in Binance's open interest was relatively smaller, leading to a temporary increase in its market share during this period.
Most platform tokens performed poorly in Q3, with only GT outperforming Bit
Affected by the overall market weakness, most exchange tokens performed poorly in the third quarter, continuing the downward trend that started in the second quarter.
GT stood out in particular, rising 16.5% by the end of the third quarter, outperforming Bit and other exchange tokens. BNB, ranked fourth in market capitalization, was unable to keep up with Bit's gains but still increased by 4.8%. Additionally, OKB and LEO saw positive growth, increasing by 1.4% and 0.9%, respectively. In contrast, other tokens performed poorly, with MX seeing the largest decline of 22.6% compared to the end of the second quarter.
