How Big is the Crypto Derivatives Market?
As of March 2023, crypto derivatives continue to dominate the market with 74.8% share of crypto's total trading volume of $2.95 trillion. Meanwhile, centralized crypto exchanges (CEX) and decentralized exchanges (DEX) spot trading has a market share of 22.8% and 2.4% respectively. Within the past six months, crypto derivatives dominance was at its highest in March 2023. Its previous high occurred in January 2023 with a 72.4% market share, followed by spot CEX at 25.5% and spot DEX at 2.1%.
What is the Most Popular Crypto Trading Market? Derivatives vs. Spot
The most popular crypto trading market are centralized crypto derivative exchanges like Binance, Upbit, and OKX. Along with its market dominance of 74.8%, derivatives volume also recorded the highest quarter-on-quarter (QoQ) growth of 34.1% between 2022 Q4 and 2023 Q1, outpacing the previous QoQ growth of total trading volume of 29.3%.
Spot CEX recorded a 16.9% QoQ growth while Spot DEX recorded a 33.4% QoQ growth outpacing the market growth along with derivatives volume.
Over the six months, derivatives volume recorded a 50.8% growth rate outpacing the market growth rate of 43.7%. Spot DEX recorded the highest growth over the period at 104.2% while Spot CEX recorded the lowest growth at 21.2%.
What is the Largest Crypto Derivatives Exchange?
Binance is the largest crypto derivatives exchange, with a market share of 59.8% and derivatives trading volume of $1,763.3 billion in March 2023. This represented a 34.2% month-on-month (MoM) growth, having recorded $1,314.3 billion in February 2023.
The second largest crypto derivatives exchange was OKX, which had a market share of 17.2% and derivatives trading volume of $508.0 billion in March 2023. This represented a 45.5% MoM growth rate, having recorded $349.1 billion in February 2023.
Bybit was the third largest with 13.2% market share and $390.3 billion in derivatives trading volume in March 2023. The remaining top 10 competitors hold less than 3.0% market share each, with Kucoin at 2.9%, Gate.io at 2.5% and dYdX at 1.5%.
Top 10 Crypto Derivatives Exchanges by Market Share (March 2023)
The top 10 crypto derivatives exchanges ranked by market share, as of March 2023 are:
| Rank | Crypto Derivatives Exchange | Market Share (%) |
|---|---|---|
| 1 | Binance | 59.8% |
| 2 | OKX | 17.2% |
| 3 | Bybit | 13.2% |
| 4 | Kucoin | 2.9% |
| 5 | Gate.io | 2.5% |
| 6 | dydx | 1.5% |
| 7 | Huobi | 1.0% |
| 8 | Deribit | 0.9% |
| 9 | Bitmex | 0.8% |
| 10 | Crypto.com | 0.2% |
Methodology
The study examined the top 10 crypto exchanges of each category (Derivatives Volume, Spot CEX, Spot DEX), using CoinGecko data from October 1, 2022, to March 31, 2023.
The top 10 crypto derivatives exchanges are: Binance, OKX, Bybit, Kucoin, Gate.io, dYdX, Huobi, Deribit, BitMEX and Crypto.com. Market share was based on total monthly derivatives trading volume.
The top 10 centralized exchanges are: Binance, Upbit, OKX, Coinbase, MEXC, Gate.io, Kraken, Kucoin, Huobi and Crypto.com. Market share was based on total monthly spot trading volume.
The top 10 decentralized exchanges are: Uniswap, Curve, PancakeSwap, Dodo, Balancer, Sushi, Trader Joe, QuickSwap, Jupiter and THORChain. Market share was based on total monthly spot trading volume.
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Curious to know more about the state of crypto in the first quarter of 2023? Check out our comprehensive 2023 Q1 Crypto Industry Report, that extensively covers everything from the crypto market landscape to analyzing Bitcoin and Ethereum, DeFi and NFT ecosystems, and more!
Shaun is a Research Associate at CoinGecko with a fondness for memes and farming on the blockchain. Follow the author on Twitter @ShaunPaulLee
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