The year 2022 was a period of immense turbulence for the cryptocurrency industry. It marked a definitive transition from a bull market to a bear market, characterized not only by dramatic price declines across almost all digital assets but also by widespread industry upheaval. This included significant layoffs, numerous company failures, and several high-profile implosions. Crypto exchanges, being a critical component of the ecosystem, served as a direct barometer for this decline, with trading volumes and shifting market shares painting a clear picture of the sector's health.
This analysis summarizes the annual data performance of the exchange sector, focusing on the top ten centralized (CEX) and decentralized exchanges (DEX). By examining these key players, which represent approximately 95% of the total market share, we can understand the broader market dynamics and competitive landscape throughout this challenging year.
Annual Trading Volume: A Significant Contraction
The aggregate annual trading volume (spot + derivatives) for the top 10 centralized exchanges plummeted to $40.87 trillion in 2022. This figure represents a staggering decline of over 50% compared to the volumes seen in 2021. The year witnessed three distinct daily trading volume peaks, occurring in May, June, and November.
The highest single day of trading activity occurred on May 12th, driven by the catastrophic collapse of Terra (LUNA). As the token's price cratered from over $80 to mere pennies, it triggered a massive volume of panic selling and arbitrage, pushing daily trading volume to a yearly high of **$3.523 trillion**.
The second peak happened on June 14th, with volumes reaching $2.9 trillion. This was a direct consequence of the bankruptcy of Three Arrows Capital (3AC), a major crypto hedge fund that suffered immense losses from its exposure to LUNA. Their collapse sent shockwaves through the market, pulling Bitcoin prices down 15.8% and causing contagion that impacted lenders and other exchanges.
The third peak was on November 9th, recording **$3.17 trillion** in volume. This was triggered by the unfolding FTX crisis, after Binance CEO Changpeng Zhao (CZ) publicly announced his decision to abandon a proposed rescue deal for the rival exchange. FTX subsequently suspended user withdrawals. It's important to note that a significant portion of the volume on FTX that day (approximately $280 billion) was essentially trapped, "paper trading" that users could not withdraw from.
Market Share Shakeup and Binance's Dominance
The competitive landscape of crypto exchanges became increasingly polarized throughout the bear market. The most significant shift was directly attributable to the collapse of FTX in November. Approximately 7.6% of the total market share previously held by FT was redistributed to other platforms.
The clear winner of 2022 was Binance. It solidified its position as the market leader, increasing its dominance from 48.9% at the start of the year to a commanding 64.1% by year's end—a gain of nearly 20% in market share. Bybit was the next largest beneficiary, growing its share by 5.4%.
Other major exchanges like OKX, KuCoin, Coinbase, Gate.io, and Kraken were relatively less affected by Binance's expansion, each seeing their market share decrease by less than 3%.
Spot vs. Derivatives Trading Breakdown
When disaggregating total volume into spot and derivatives, the top 10 rankings show some variation:
- Binance and OKX consistently held the top two positions in both categories.
- The dominance of derivatives trading is clear; it generates far more volume than spot trading across the market. This is why Bybit, which is heavily focused on derivatives, ranked third in the combined volume ranking, while spot-heavy Coinbase ranked seventh.
- Exchanges like Bybit (95% derivatives), OKX (86%), and Binance (75%) are derivatives-led.
- Exchanges like Bitfinex, Kraken, and Coinbase are more reliant on their spot trading businesses.
👉 Explore real-time market data and trading insights
The FTX Collapse: A Case Study in Rapid Implosion
The bankruptcy of FTX was one of the largest and fastest collapses in cryptocurrency history, unfolding over a mere 10 days in November 2022.
- November 2nd: CoinDesk published a leaked balance sheet from Alameda Research (founded by FTX's Sam Bankman-Fried) revealing the firm held a $5 billion position in FTT, FTX's native exchange token, raising serious questions about its financial health.
- November 6th: Binance CEO CZ announced his intention to liquidate all of Binance's holdings of FTT, worth approximately $580 million at the time, creating immense selling pressure.
- November 10th: After a failed attempt to secure a liquidity bailout from Binance and others, FTX was forced to suspend all customer withdrawals.
- November 11th: FTX filed for Chapter 11 bankruptcy protection in the United States, and Sam Bankman-Fried resigned as CEO.
This event erased billions in liquidity from the market and shattered investor confidence in centralized custodians.
Exchange Token Performance
Nearly all major centralized exchange tokens suffered massive losses in 2022. Tokens like FTT, CRO, WRX, BTR, and ASD saw their prices drop by over 80%.
However, some tokens demonstrated relative resilience. LEO (Bitfinex's token) actually gained 3% over the year, while OKB (OKX's token) declined by only 5%. Tokens from larger exchanges generally outperformed those from smaller platforms, with BNB, HT, and GT posting better results than Bitcoin and Ethereum for the year, despite their declines.
The Rise of Decentralized Exchanges (DEX)
The top 10 decentralized exchanges (DEX) saw a combined annual trading volume of $1.33 trillion in 2022. On average, DEXs accounted for 3.15% of the total crypto trading market share for the year.
While the overall trend for DEX market share was downward throughout most of 2022, it experienced a brief resurgence in Q4 following the FTX collapse, as users sought self-custody and transparency. The annual volume leaderboard saw significant changes:
- Uniswap V3's dominance was challenged, its share falling from 31.1% to 23.4%.
- The biggest winner was GMX, a derivatives-focused DEX. Its market share skyrocketed from 1.2% at the start of the year to 29.6% by the end—a gain of 28.4%.
- PancakeSwap saw the largest share loss, dropping from nearly 20% to just 3.3%.
GMX was a standout performer. Its trading volume grew by 39% from Q1 to Q4, and its native token, $GMX, nearly doubled in price over the course of the year, rising 91% while nearly every other asset plummeted.
Frequently Asked Questions
Q1: Which crypto exchange gained the most market share in 2022?
Binance was the unequivocal winner, increasing its market dominance from 48.9% to 64.1% by the end of the year. This growth was largely fueled by absorbing users from collapsing competitors like FTX.
Q2: What was the main cause of the three big trading volume spikes in 2022?
The volume peaks were directly tied to major market crises: the Terra-LUNA collapse in May, the Three Arrows Capital (3AC) bankruptcy in June, and the FTX liquidity crisis and failure in November. These events triggered massive waves of trading, liquidations, and arbitrage activity.
Q3: How did decentralized exchanges (DEX) perform compared to centralized ones (CEX) in 2022?
DEXs accounted for an average of 3.15% of the total market share. While their overall volume and share trended downward for most of the year, they saw a brief spike in usage and sentiment following the FTX collapse, as the "not your keys, not your coins" ethos regained prominence.
Q4: Were there any exchange tokens that performed well in the 2022 bear market?
Yes, a few tokens showed remarkable resilience. LEO (from Bitfinex) gained 3%, OKB (from OKX) was down only 5%, and BNB (from Binance) outperformed Bitcoin. In the DEX sector, GMX's token was a massive outlier, rising 91% throughout the year.
Q5: What is the difference between a spot-led and a derivatives-led exchange?
A spot-led exchange (e.g., Coinbase, Kraken) derives most of its trading volume from the immediate buying and selling of assets. A derivatives-led exchange (e.g., Bybit, Bitget) generates most of its volume from futures, perpetual swaps, and options contracts. Derivatives trading typically accounts for a much larger portion of overall crypto market volume.
Q6: After FTX collapsed, which exchanges benefited the most?
In the derivatives market, Bybit and Bitget captured the largest shares from FTX's absence. For overall market share, Binance was the primary beneficiary. The event also drove increased attention and volume to transparent, on-chain decentralized exchanges like GMX.
Key Takeaways from a Turbulent Year
The data from 2022 reveals a story of extreme consolidation, crisis, and contagion. The year underscored critical lessons about counterparty risk, the fragility of overly leveraged entities, and the growing divide between the largest, most resilient exchanges and the rest of the pack. While the market contracted severely, it also laid the groundwork for a potential recovery built on stronger risk management practices and a renewed appreciation for the transparency offered by decentralized finance (DeFi) protocols.