Here’s How Much the Crypto Market Grew in 2023: CoinGecko

Crypto market analysis platform CoinGecko has provided a breakdown of industry growth in 2023 amid optimism and anticipation over several events this year, including the recent approval of Bitcoin exchange-traded funds (ETFs) and the upcoming Bitcoin halving.

According to the reportThe market saw substantial growth in several areas, including decentralized finance (DeFi), non-fungible tokens (NFT), centralized exchanges (CEX), and decentralized exchanges (DEX).

Crypto Market Cap Increased 2.6 Times

During 2023, the crypto ecosystem more than doubled its total market capitalization, increasing 108% from the $832 billion recorded at the beginning of the year. Most of the growth came in the fourth quarter, when optimism surrounding Potential approval of spot Bitcoin ETFs increased, leading to a 55% increase in market capitalization from $1.1 trillion to over $1.7 trillion.

CoinGecko attributed the market cap surge to Bitcoin's (BTC) impressive resurgence, as the asset soared from $27,000 to $42,000 in the fourth quarter and posted 155% growth for the full year.

“BTC had a strong first bullish leg in the first quarter, with an increase of +72.4%, followed by another peak in the second quarter. It then retreated in the third quarter, falling -11.5%, before recovering in the fourth quarter. Similarly, the average BTC trading volume fell towards the end of the first quarter and gradually declined in the second and third quarters. It then rebounded in the fourth quarter to $18 billion, a gain of +64.3% quarter-on-quarter,” the analysts said.

Other crypto assets like Ether (ETH) and Solana (SOL) too Recorded impressive profits last year. The former rose 90.5%, closing the year at $2,294, while the former rose more than 900% and ended the year at $103.

CEXs dominated cryptocurrency trading volume

Furthermore, the cryptocurrency market recorded a trading volume of $36.6 trillion in 2023, with the most impressive growth experienced in the fourth quarter, a 53.1% gain from $6.7 trillion in the third quarter. quarter to 10.3 billion dollars. The fourth quarter of 2023 marked the first quarter-over-quarter growth of the year, stemming from enthusiasm around ETFs.

CEXs dominated trading volume despite regulatory hurdles from the largest crypto exchange, Binance, and the implosion of FTX the previous year.

Meanwhile, NFT trading volume declined, ending the year at less than half of 2022's figure. The top 10 chains' volumes amounted to $11.8 billion, while the previous year's was $26.3 billion. Dollars.