- Monthly trading volume across crypto exchanges reached $1.1 trillion in December 2022, the highest since September 2022.
- Binance led exchanges with 39.3% of December’s volume, followed by Upbit and OKX.
- The rise in volume is attributed to optimism around the expected approval of spot bitcoin ETFs, which also correlated with a 5.8% Bitcoin price rally.
In December 2022, monthly cryptocurrency exchange trading volume surpassed $1 trillion for the first time in over a year. This spike in trading activity was likely fueled by optimism around the expected approval of spot bitcoin ETFs.
Monthly Trading Volume Tops $1 Trillion
The total trading volume across crypto exchanges in December 2022 reached $1.1 trillion according to data from The Block‘s dashboard. This is the highest monthly volume since September 2022.
Among major exchanges, Binance led with 39.3% of the month’s volume. Upbit and OKX followed with 8.3% and 8.0% respectively.
Anticipation Around Spot Bitcoin ETFs
The Block’s Director of Research Steven Zheng believes the rise in volume is due to enthusiasm that spot bitcoin ETFs will soon gain regulatory approval.
Given crypto’s historically slow December trading, cracking $1 trillion points to optimism around the “forthcoming spot bitcoin ETF approval and rebirth of a bull market,” says Zheng.
As traders anticipate spot ETF approval, Bitcoin also rallied in December – surging by 5.8% to over $45,000.
Conclusion
The surge in crypto exchange volume to over $1 trillion for the first time in months appears driven by expectations of spot bitcoin ETF approvals. This enthusiasm also correlated with a rally in Bitcoin’s price. Crypto markets seem optimistic that 2023 will see the launch of spot crypto ETFs in the US.
