The cryptocurrency market has seen explosive growth in 2023, reaching new heights of adoption, innovation, and valuation. According to a new report from Ailtra, a leading provider of AI-powered trading solutions, the total trading volume of crypto exchanges surpassed $10 trillion in 2023, a staggering increase of 300% from the previous year.
The report, which analyzed data from over 200 crypto exchanges, revealed that the average daily trading volume of crypto exchanges was $27.4 billion in 2023, compared to $6.8 billion in 2022. The report also showed that the number of active traders on crypto exchanges increased by 150% in 2023, reaching 100 million users worldwide.
The report attributed the surge in crypto trading volume to several factors, such as the growing popularity of decentralized finance (DeFi) platforms, the emergence of non-fungible tokens (NFTs), the increased institutional and retail adoption of cryptocurrencies, and the launch of new products and services by crypto exchanges.
Some of the highlights of the report include:
- Binance, the world’s largest crypto exchange by trading volume, accounted for 25% of the total trading volume in 2023, followed by Coinbase (12%), Kraken (8%), and KuCoin (7%).
- The top 10 crypto exchanges by trading volume represented 75% of the total market share, indicating a high concentration of liquidity and activity among the leading platforms.
- The most traded cryptocurrency pair in 2023 was BTC/USDT, with a trading volume of $2.4 trillion, followed by ETH/USDT ($1.2 trillion), and USDT/USDC ($800 billion).
- The most popular trading strategy in 2023 was arbitrage, which involves exploiting price differences between different crypto exchanges, followed by market making, which involves providing liquidity and earning fees from trades, and trend following, which involves following the direction of the market movement.
- The most widely used trading tool in 2023 was AI crypto trading bots, which are software programs that use artificial intelligence and advanced algorithms to automate crypto trading, optimize strategies, and maximize profits. According to the report, 60% of crypto traders used AI trading bots in 2023, compared to 30% in 2022.
The report concluded that the crypto market is expected to continue its rapid growth in 2024, as more innovations, regulations, and opportunities emerge in the space. The report also predicted that the total trading volume of crypto exchanges will reach $20 trillion in 2024, doubling the current figure.
