The volume of crypto exchanges has increased in recent months and is approaching the competing volumes captured by the world’s largest stock exchange.
The volume of exchanges tracked by The Block in legitimate locations reached its highest ever level this month. So far, crypto exchanges recorded more than $ 1.26 trillion in April, slightly more than the previous month’s volume of $ 1.17 trillion.
The rise in the price of crypto assets helped fuel that volume growth. In fact, trading volume in the crypto world makes up a much higher percentage of the much larger stock market, according to data compiled by The Block.
According to data from Cboe Global Markets and CryptoCompare, the volume of crypto exchanges relative to the volume of trading venues owned by the New York Stock Exchange increased from 8% in September 2020 to a high of 49% in February 2021 up to 20-25% of US stock market trading, depending on the day.
The New York Stock Exchange, which operates 5 exchanges including NYSE, NYSE American, NYSE Arca, NYSE National, and NYSE Chicago, had a total of $ 3.325 trillion in its locations in March 2021 compared to the $ 1.17 trillion in its locations -Dollars of the exchange volume of the crypto market.
Binance, the largest exchange in the crypto market by volume, was equivalent to 23% of NYSE volume across all 5 locations in March.
HideNotSlide, a well-known anonymous commentator on market structure and stock market trades, said the data backs the market perspective of “looking at how big crypto is getting compared to legacy finance”.
Dave Weisberger, who runs CoinRoutes, a crypto trading technology company, was surprised by the data and stated that “these percentages are amazingly high in my opinion”.
Part of that can be explained by the unique elements of the crypto market, he said.
“It really shows how much sales there are,” said Weisberger. “From a trading perspective, there is a lot more velocity, that is, a lot more trading, than there is with any other asset.”
© 2021 The Block Crypto, Inc. All rights reserved. This article is for informational purposes only. It is not offered or used as legal, tax, investment, financial or other advice.