(rejected) Crypto Exchanges Witnessed Record High Daily Trading Volumes in September at $27.6 Billion

CryptoCompare, a cryptocurrency market data provider, has reported that top-tier crypto exchanges recorded an all-time high daily trading volume of $27.6 billion on September 3. 

Smashing the previous high

CryptoCompare tweeted that the previous high of $27.1 billion was witnessed on July 27. Therefore, the September uptrend in daily trading volumes represented a 1.85% increase. 

Nevertheless, things were not rosy for the derivative and spot trading markets as they plummeted by 17.5% from the previous month. 

The increase in daily trading volumes correlates with a recent report by Glassnode, an on-chain market analytics firm, that showed the doubling of Bitcoin wallets sending funds to crypto exchanges since January 2020. The number was around 100,000 unique addresses. It added that the last time such a trend was witnessed was during the peak bull market of 2017. 

Growing appetite for decentralized exchanges 

The CryptoCompare report also offered insights into how some users were leaning towards decentralized exchanges (DEX). This was a concern aired out by 26 leading exchanges as they noted that the anonymity and self-custody features presented by DEXs were giving them an upper hand. Nevertheless, they noted that fiat compatibility and liquidity gave centralized crypto exchanges a competitive advantage.

The skyrocketing of daily trading volumes on crypto exchanges shows continuous crypto adoption. For instance, as a way to show that it holds Bitcoin dearly as an instrument of economic empowerment, Square, an American financial services company, recently pumped a whopping $50 million into this digital asset.

This decision was reached because the firm believes cryptocurrencies provide a way to participate in the global monetary system, which aligns with its purpose. The crypto community immediately felt this notable investment because it pushed Bitcoin’s price up by more than $300, and it looks like the sky’s the limit because BTC is trading at around $11,300.