Wintermute has reported a remarkable 400% increase in over-the-counter (OTC) trading volumes for the year 2023, a significant achievement amid a challenging year for crypto exchanges.
In their latest report on OTC performance, Wintermute, a crypto market maker and liquidity provider, revealed a fourfold surge in OTC trading volume despite market downturns.
The report noted, “From the early resurgence, through a volatile mid-year, ending with renewed optimism largely fueled by expectations for spot ETF approval. Last year, while the markets took a moment to breathe, we focused on building out our OTC business, increasing our capabilities, and adding new product offerings.” This indicates Wintermute’s strategic efforts to strengthen and expand its OTC trading business amid market fluctuations.
Wintermute Unveils Transition from Traditional Exchanges to OTC
The Wintermute report highlighted a significant development in its OTC trading volumes, stating, “On Spot, from H1 to H2 2023, while overall volumes on exchange have declined approximately 13%, during the same period, Wintermute OTC volumes have grown >400%.”
During the first half (H1) of 2023, Wintermute’s OTC volumes initially experienced a decrease and remained at a lower level. However, the second half (H2) witnessed a substantial boost, resulting in a quadrupling of the total OTC volume.
The report detailed this surge, stating, “We saw a significant increase in trading activity with the number of trades growing over 6x, making up over 29 million trades. We also saw the largest OTC volume week of >$2 billion during this time.”
Additionally, there was a notable shift in trading activity from traditional exchanges to OTC volumes. Exchange volumes declined by 13% from H1 to H2 2023, as reported in the study.
Wintermute CEO Evgeny Gaevoy commented on the growth, saying, “We laid the groundwork for what’s next, particularly with the expansion of our OTC business, which saw impressive growth in the second half of the year. A key aspect of this growth has been refining our derivatives offering and aligning our suite with the increased demand we’ve observed for these products.”
