Coinbase exchange saw a drop in monthly trading volume in February, while OKX Exchange saw an 85% increase in volume compared to the largest exchange in the US. USA.
February proved to be a tough time for crypto products. Some areas of the space have been hit hard, and exchanges have also been hit hard.
According to the research, OKX and Coinbase generated around $751.38 billion in trading volume. While this may seem quite high, the total volume of these two exchanges in February was down by $134.38 billion (about 15%) compared to January.
Trading volume is still down from 2021
Coinbase’s total trading volume over the past year is down 27% from February 2021, when the exchange hit about $128 billion in volume.
Coinbase trading volume plummets more than 160 billion USD
At the market peak in May 2021 when tokens like Ethereum (ETH) and Internet Computer (ICP) hit ATH levels, Coinbase hit new volume milestones. Total volume for Coinbase as of May 31, 2021, is approximately $255 billion.
With the digital asset’s price slump in Q3 2021, which runs through the end of the year, Coinbase’s December trading volume tumbled around $108.51 billion having been wiped off its peak in May.
As a bearish trend engulfed the market in February 2022, Coinbase trading volume plummeted to $162.91 billion from its monthly high in May of last year (63.65% in 9 months).
OKX continues to surpass Coinbase
Although Coinbase had a trading volume that hit $93 billion in February, OKX hit $658 billion. Similar to Coinbase, trading volume on OKX has dropped 13% since January 2022.
January 2022 saw OKX bring in a total trading volume of $761 billion.
In contrast to Coinbase, OKX has seen strong growth year over year. In February 2021, OKX had a trading volume of 562.81 billion USD, in 2022 this number has increased by 16.97%.
Users prefer to use OKX
As of March 2022, Binance remains the largest cryptocurrency exchange by daily trading volume. Based on stats, OKX is still preferred over Coinbase and behind Binance.
Before both exchanges’ trading volumes plummeted in February, the last month of 2021 and early 2022 saw OKX’s volume surpass Coinbase’s by 83.62% and 78.77%, respectively.
During its ATH in May 2021, OKX surpassed Coinbase by 69.11%. And in February 2022, OKX trading volume was 85% higher than Coinbase.
The cause of the drop in monthly trading volume?
To understand what caused the monthly volume on exchanges to drop, we should focus on the overall market outlook for the first quarters of 2021 and 2022.
Negative market outlook
While exchanges like OKX have seen year-over-year growth, centralized exchanges like Binance and Coinbase are unlikely to surpass ATH in 2021 due to the bearish outlook of the market.
At the moment in 2021, Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB) and others are testing higher daily highs, 2022 will see the market rally again. market from lows in late 2021.
NFT started gaining ground in the crypto-finance space in the early months of 2021. This led to huge demand for Ether (ETH) and new blockchain-based tokens, backed by contracts. other smarts.
The same is unlikely to happen in 2022 as some NFT markets, such as NBA TopShot, continue to see a decline in monthly trading volumes.
Additionally, there has been some speculation in 2021 about some countries considering research on the prospects of central bank digital currencies (CBDCs).
All of the above has helped the crypto market boom in 2021, leading to a spike in demand for crypto assets by investors and traders.
In 2022, although the crypto market sentiment is quite negative, there are still positives, such as the increase in trading of stablecoins like Binance USD (BUSD), United States Dollar Coin (USDC) and United States Dollar Tether (USDT).
Trading stablecoins is primarily a way to protect holdings from loss. This has been to the detriment of exchanges like Coinbase, but has improved OKX’s volume greatly in 2022.
What made the difference?
To understand the difference in monthly trading volume, users need to take into account the number of coins listed, the markets supported, and the trading volumes of those individual markets on OKX and Coinbase.
As of March, Coinbase supports around 123 cryptocurrencies and 509 markets. The top markets on the exchange as of now are BTC/USD, ETH/USD, AVAX/USD, WLUNA/USD, and SOL/USD.
The total volume for these markets is $1.26 billion.
As of March, OKX supports around 343 cryptocurrencies and 28,113 markets. The most popular markets on the exchange as of now are BTC/USDT, LUNA/USDT, BTC/USD and ETH/USDT.
The total volume for these markets is $2.06 billion.
From the statistics, it is clear that the number of coins on OKX is more than double the number of coins on Coinbase. Also, the number of markets on OKX is 55 times that of Coinbase.
The top markets on OKX are dominated by the largest stablecoin by market capitalization, USDT while Coinbase continues to rely on USD trading pairs to keep up with other exchanges in the market.
Simply put, OKX has more volume because there are more stablecoin pairs in its top 100 markets.
Traders took advantage of the diversity of stablecoin markets on the exchange to hedge their assets from the drop caused by negative crypto market sentiment during the first three weeks of February, along with geopolitical instability when the Ukraine-Russia conflict broke out.
As of the second week of March, the total trading volume of OKX and Coinbase has surpassed $250 billion and $30 billion, respectively.
If things continue, OKX will continue to trail Coinbase in terms of trading volume by the end of March 2022.