Euphoria

Shift

USDC

Rise

The markets, which turned 180 degrees from the excitement of 2021 to the collapse of 2022, drove most investors away from cryptocurrencies. The falling volumes clearly demonstrated this, and we saw that major market makers also abandoned their order books by mid-2022. Now, the widespread belief that a bigger surge will begin in 2024 is causing everyone to have sweet dreams instead of nightmares at night. 
<h2 style="text-align: justify" id="2023-defi-report">2023 DeFi Report</h2> 
In 2023, significant growth was expected in the <a href="https://en.coin-turk.com/negative-news-from-solanas-biggest-defi-platform/" data-wpel-link="internal">DeFi</a> sector. This was due to the perception of a “less trustworthy environment against central institutions” following the collapse of FTX. Investors began to understand the importance of self-custody of their assets and started to seriously consider the possibility of trading with synthetic cryptocurrencies. 
The ratio of DEX volume to CEX volume reached a peak of over 21% in May this year, but the primary reason was the memecoin frenzy seen that month. If you want to achieve hundreds of times in gains, you should know that altcoins with the potential to increase in price by thousands of times usually start trading on DeFi platforms first. After remaining below 10% for months at the beginning of the year, this ratio continued to stay high after the frenzy, exceeding 13% from June to November. 
March was the month with the highest volume for DEXs, just like in CEXs, due to the panic caused by the USDC drama. The volumes increased because a large number of USDC was held locally on networks, and investors could also use USDC to mint DAI. We all remember the extent of the imbalance in the Curve stablecoin swap pool. 
<img loading="lazy" loading="lazy" decoding="async" class=" wp-image-294075 aligncenter" src="https://coin-turk.com/wp-content/uploads/2023/12/DEX-ve-CEX-Hacim-Oran.png" alt="" width="1192" height="549"> 
<h2 style="text-align: justify" id="2023-derivatives-markets">2023 Derivatives Markets</h2> 
The trend in derivative markets was largely similar to spot markets. This year, the total volumes in futures contracts peaked in March and hit the lowest level in September, but the volumes on the futures front consistently stayed above the lowest levels of December 2022. 
On the open interest front, there were some contrasts between futures and options. Especially looking at <a href="https://en.coin-turk.com/bitcoin-whales-continue-accumulating-despite-market-fluctuations/" data-wpel-link="internal">Bitcoin</a> contracts, there has been a recent increase in option activities due to the limited number of assets and platforms available for option trading, making a fair comparison between the two difficult. 
<img loading="lazy" loading="lazy" decoding="async" class="size-full wp-image-294076 aligncenter" src="https://coin-turk.com/wp-content/uploads/2023/12/Turev-Piyasalari-1.png" alt="" width="1292" height="617"> 
At the beginning of 2023, the open interest size of BTC options on exchanges was around $3.63 billion. In November, we saw it climb to an all-time high of $17.5 billion, which was largely due to the expectation of ETF approval, as we have mentioned thousands of times over the months. 
<img loading="lazy" loading="lazy" decoding="async" class="size-full wp-image-294077 aligncenter" src="https://coin-turk.com/wp-content/uploads/2023/12/Turev-Piyasalari-2.png" alt="" width="1277" height="596"> 
The open interest in Bitcoin futures also increased throughout the year, but not by such a large margin. On the first day of the year, the open position was $10.15 billion, and it climbed to a peak of about $18.5 billion in November. 
Although concerns about inflation resurfacing in August wiped out $3 billion in open positions in one day, we saw this quickly reverse, and since then, the highest levels have been seen since April 2022. Continue Reading: <a href="https://en.coin-turk.com/from-euphoria-to-collapse-the-shift-in-crypto-markets-and-the-rise-of-defi-in-2023/" data-wpel-link="internal">https://en.coin-turk.com/from-euphoria-to-collapse-the-shift-in-crypto-markets-and-the-rise-of-defi-in-2023/</a>

From Euphoria to Collapse: The Shift in Crypto Markets and the Rise of DeFi in 2023

Table of Contents

COINTURK NEWS

Other articles published on Dec 26, 2023

Despite the Stagnation in Bitcoin Price, Institutional Investors Continue to Enter!

DCG founder Barry Silbert steps down from Grayscale board

The Crypto Bulls Are Back: Digital Asset Inflows Cross $103 Million In One Week

Fred Krueger says Solana is nothing but science fiction

Why do analysts believe XRP can hit $1 in Q1 2024?

Justin Sun Withdraws $14 Million In Ethereum – Here’s Why It Matters

Join our free newsletter for daily crypto updates!