In a challenging year for cryptocurrency exchanges, Wintermute predicts a remarkable 400% increase in over-the-counter (OTC) trading volume for 2023, as outlined in its recent OTC performance report. Despite the overall market downturn, Wintermute, a cryptocurrency market maker and liquidity provider, reported a fourfold surge in OTC volumes. The report covers the entirety of 2023, highlighting phases of early recovery, mid-year volatility, and renewed optimism toward the year-end, particularly driven by expectations surrounding spot ETF approvals. Wintermute credits its OTC business growth to continuous improvement in capabilities and the addition of new products throughout the year.
While the total spot trading volumes experienced a 13% decline from the first half to the second half of 2023, Wintermute's OTC volumes witnessed an extraordinary growth of over 400% during the same period. The first half of the year saw a dip and sustained low levels in Wintermute's OTC trading volume, followed by significant growth in the second half, ultimately quadrupling the total volume. The report highlights a substantial increase in trading activity, with the number of trades surging over 6 times to exceed 29 million trades. The peak week for OTC trades during this period recorded over $2 billion in traded volume.
The report also underscores the ongoing shift from traditional exchange trading to over-the-counter trading, with transaction volume declining by 13% from the first half to the second half of 2023. Wintermute's CEO, Evgeny Gaevoy, expressed confidence in the company's strategic foundation, particularly emphasizing the impressive growth achieved by its OTC business in the latter half of the year. Gaevoy further highlighted the importance of refining derivatives offerings and aligning the suite with the observed growing demand for these products, signaling Wintermute's strategic focus for the future.
