CoinGecko: Bitcoin grew by 155% in 2023 due to ETF optimism
CoinGecko shares industry highlights from its Annual Crypto Industry Report, including Bitcoin’s major growth attributed to the ETF approved in early 2024.
Included in the report’s highlights, CoinGecko reveals that the total crypto market increased 108% in 2023, with an increase of $869 billion. However, at the same time, the daily trading volume saw a 31.6% decrease from 2022, settling at $58.9 billion.
The report states that growth stemmed from Bitcoin (BTC), the world’s largest cryptocurrency, which rose 72.4% in the first quarter, followed by another price spike in the second, before pulling back 11.5% in the third quarter and rallying again towards the end of the year. At the end of 2023, BTC hit a yearly high of $44,004, which hadn’t been seen since April 2022. Currently, BTC is at $42,592, down 6.2% in the past seven days.
Alongside Bitcoin was Ethereum (ETH), which also performed well in 2023, growing by 91% and closing at $2,294, with its highest returns in Q1, rising 49.8% from $1,196 to $1,792. While the average daily trading volume remained relatively stable throughout 2023, a notable uptick occurred in Q4, increasing from $7.2 billion to $14.4 billion.
The cryptocurrency market reported a total trading volume of $36.6 trillion in 2023. In Q4, the volume surged from $6.7 trillion in Q3 to $10.3 trillion, marking a gain of 53.1%. This represented the first quarter-on-quarter growth of the year, primarily attributed to a bullish shift in market sentiment amid anticipation for Bitcoin ETFs.
Despite FTX facing challenges in 2022 and Binance encountering regulatory hurdles throughout 2023, centralized exchanges (CEXs) continued to dominate trading volume, with the CEX/DEX spot ratio reaching 91.4%.
