Boost in Trading Volumes on CEX Surges by 139% in 2024
In the dynamic world of cryptocurrency, 2024 was a remarkable year as centralized exchanges (CEXs) experienced a significant surge in trading volume. According to WuBlockchain, the total spot trading volume on CEXs increased by an impressive 139% to reach $18.38 billion.
This surge was primarily driven by institutional appetite, fuelled by regulatory-approved spot Exchange-Traded Funds (ETFs) and favourable market conditions for Ethereum and Bitcoin. Institutional investors, drawn by regulatory developments such as the GENIUS Act and the introduction of spot Bitcoin and Ethereum ETFs, began reallocating capital towards mainstream Layer 1 blockchains like Ethereum and custodial stablecoins.
Ethereum was a major driver, with inflows exceeding $2 billion and its price jumping 24.5% during a notable upward trend that regained levels above $3,800. Bitcoin also saw approximately $2 billion in inflows, highlighting renewed demand for these leading cryptocurrencies.
The growing scale and liquidity of exchange-traded products (ETPs) on centralized exchanges also played a significant role. By mid-2025, ETPs on CEXs had amassed assets under management (AUM) of about $220 billion and experienced weekly turnovers around $39 billion. This scale rivaled many traditional asset classes and improved market liquidity, enabling large players to trade spots more efficiently with tighter bid-ask spreads and less price impact.
The United States emerged as the largest source of inflows, contributing more than $4 billion in one recent week, indicating strong regional demand driving centralized exchange volumes. Other regions had mixed flows, but the dominant US inflows underscored a consolidated institutional interest that boosted spot trading activity.
Meanwhile, in the decentralized exchange (DEX) market, Uniswap held the largest market share in December 2024, with a volume of $106.4 billion. Pancake Swap came in second with a volume of $96.4 billion, and Raydium took the third spot with a volume of $58 billion. Bybit became the second-largest spot exchange in 2024, while Crypto.com showed the strongest growth among CEXs, with a growth rate of 960%.
The overall trading volume in crypto derivatives markets also saw a notable increase, rising by 91% to reach $53.24 billion. However, it's worth noting that the derivatives market share of Binance dropped from 50% to 38% in 2024.
In summary, the surge in spot trading volume on centralized exchanges in 2024 was primarily due to institutional appetite catalysed by regulatory-approved spot ETFs and market conditions favourable to Ethereum and Bitcoin. This was complemented by growing liquidity, product innovation like staking-enabled ETFs, and concentrated inflows mainly from the US market. The record volume in the DEX market also underscores the growing interest in decentralized trading platforms.
The surge in centralized exchange trading volume in 2024 was significantly influenced by institutional investors, drawn by regulatory developments like the GENIUS Act and Bitcoin and Ethereum ETFs, who began reallocating capital towards mainstream blockchains. Finance and technology, particularly in the cryptocurrency industry, experienced remarkable growth as spot Bitcoin and Ethereum saw approximately $2 billion in inflows, underscoring renewed demand for these leading cryptocurrencies.
