ETF optimism leads to a 155% surge in Bitcoin growth in 2023, says CoinGecko
CoinGecko, in its Annual Crypto Industry Report, has shared some key highlights from the industry. One of the major factors contributing to Bitcoin’s growth in 2023 was the approval of the ETF in early 2024.
According to the report, the total crypto market witnessed a significant increase of 108% in 2023, with a total value of $869 billion. However, the daily trading volume experienced a decline of 31.6% compared to 2022, settling at $58.9 billion.
Bitcoin (BTC), the largest cryptocurrency in the world, played a crucial role in this growth. It saw a rise of 72.4% in the first quarter and another price spike in the second quarter. However, it experienced a setback of 11.5% in the third quarter before rallying again towards the end of the year. By the end of 2023, BTC reached a yearly high of $44,004, a level not seen since April 2022. Currently, BTC stands at $42,592, showing a decline of 6.2% in the past seven days.
Ethereum (ETH) also performed well in 2023, witnessing a growth of 91% and closing at $2,294. Its highest returns were seen in the first quarter, with a rise of 49.8% from $1,196 to $1,792. Although the average daily trading volume remained relatively stable throughout the year, there was a notable increase in the fourth quarter, rising from $7.2 billion to $14.4 billion.
The total trading volume in the cryptocurrency market for 2023 was recorded at $36.6 trillion. In the fourth quarter, the volume surged from $6.7 trillion in the third quarter to $10.3 trillion, marking a gain of 53.1%. This growth was primarily driven by a bullish shift in market sentiment, fueled by the anticipation of Bitcoin ETFs.
Despite facing challenges in 2022 and regulatory hurdles in 2023, FTX and Binance, two prominent exchanges, centralized exchanges (CEXs) continued to dominate the trading volume. The CEX/DEX spot ratio reached 91.4%.
In conclusion, CoinGecko’s report highlights the significant growth of the crypto industry in 2023, with Bitcoin and Ethereum leading the way. The approval of the ETF and the bullish market sentiment contributed to this growth, despite challenges faced by certain exchanges.
