The crypto exchange HTX, formerly known as Huobi, enjoyed a meteoric rise to prominence during its first decade, establishing itself as the undisputed leader in the industry, surpassing rivals like Binance and OKX. However, the exchange's trajectory took a sharp turn following its withdrawal from key markets, a decision that significantly impacted its trading volume. This shift led to a decline in its market share, ultimately relegating the once-dominant platform to third-tier status prior to its recent acquisition.

October 2022 marks the birth of a new HTX, with the enrollment of Justin Sun as an advisor. Subsequently, with a dose of youthful dynamism injected, the platform set an ambitious goal: to reclaim its position among the world's top three exchanges. Recent data indicates that HTX's trading volume has been on an upward trend for three consecutive months, with its spot trading volume now ranking in the global top three.

HTX's Global Ranking in Spot Trading Volume: Third

Major exchanges' performance in trading volume over the past year (Source: Coingecko)

The chart reveals a dramatic surge in trading volume across the exchanges during Bitcoin's historic peak, followed by a swift decline as the market cooled. However, HTX stands out as a notable exception, maintaining robust trading activity even after the peak subsided. According to Coingecko, the average daily spot trading volume for the exchanges over the past month is as follows:

Binance: $7.14 billion

Bybit: $3.32 billion

HTX: $2.06 billion

Coinbase: $1.96 billion

OKX: $1.87 billion

This data positions HTX in third place in terms of spot trading volume. It is important to note that these figures represent average volumes over the past month, not a short term. While HTX has made such a big stride, it still trails Binance on trading volume by a considerable margin.

Additionally, Coingecko's trust score for liquidity places HTX second globally with a score of 588, just behind Binance.

New Platform Token and Innovative Events Drive Growth

HTX's sustained volume growth is inseparable from the upgrade of its platform token. HTX DAO was officially established on January 18, 2024, with $HTX as its governance token, also known as the new platform token of HTX. It boasts two major innovations: decentralized governance and the ecosystem liquidity pledge model.

Starting in 2024, HTX will allocate 50% of its quarterly revenue to the HTX DAO ecosystem as the liquidity pledge. The liquidity pledge refers to adding liquidity to the TRX-HTX pool on SUN.io and burning the obtained LP tokens. Over time, this model will further decentralize $HTX, ultimately achieving a DAO structure. Unlike the traditional token burning mechanism, liquidity pledges highlight fairness for all users.

The substantial improvement in HTX's liquidity is a testament to these strategic initiatives. Embracing new high-quality assets, upgrading the platform token, and launching innovative promotions have all contributed to enhancing the exchange's liquidity.

Nevertheless, while HTX returned to the third ranking by trading volume, the advantage is not yet significant. There is still a risk of being outperformed by Coinbase and OKX, and more work to do to reach the very top. In the competitive landscape of centralized exchanges dominated by Binance, HTX needs to continue its efforts to break through while maintaining its position as a major player.