In the ever-evolving world of cryptocurrency, the second quarter of 2023 has seen a significant slowdown in spot trade volume among the top 20 exchanges, including leading crypto exchange Binance.
According to a report from CoinMarketCap on exchange activities (CEX & DEX) in H1 2023, these exchanges’ combined spot trade volume amounted to $1.67 trillion, marking a substantial 36% decrease compared to the previous quarter.
This decline follows the retaliatory surge in market activities witnessed in Q1, where a staggering $2.6 trillion was traded, driven primarily by Bitcoin’s price doubling. The current trade volume mirrors the market conditions observed after the FTX crash, hinting at a potential recovery phase.
Despite the decline, Binance maintains its dominant position in the market, accounting for a 59.99% share of the spot trading volume throughout H1 2023. It represents a stable performance compared to the same period last year.
The Top 5 Exchanges collectively contributed to approximately 85% of the total spot market volume, with Binance, Coinbase, and Kraken boasting the highest Average Liquidity scores, each surpassing 700.
The market still offers a healthy number of trading pairs and available coins, with an upward trend in new listings. Binance, in particular, has excelled in liquidity within the large-cap space and focused on adding high-quality mainstream coins to its listings.
During the meme-coin season from April to June 2023, BitForex and Bitget stood out as two of the most active exchanges in adding new coins.
Binance’s Proof of Reserve Assets Remain Strong Despite Outflows
Looking at the Proof of Reserve Assets disclosed by several exchanges, Binance, OKX, and Bitfinex emerged as the leaders, showcasing the highest reserve amounts. Bitcoin and stablecoins constituted the majority of reserve assets across most exchanges.
However, recent market fear, uncertainty, and doubt (FUD) have resulted in capital outflows from Binance, leading to a reduction of $20 billion in its proof-of-reserve assets. Nevertheless, Binance maintains healthy, diversified, and secure coins as part of its reserves.
While most exchange tokens achieved positive returns in H1 2023, they struggled to outperform Bitcoin’s impressive year-to-date growth of 182%. In the decentralized exchange (DEX) arena, Uniswap continued its dominance with a market share of 57.5%. Its monthly volume rivaled that of Coinbase’s spot volume.
The top three DEXs, including Uniswap, Pancake, and Curve, captured approximately 82% of the total DEX market in H1 2023. However, these developments shed light on the shifting dynamics among exchanges and the growing influence of decentralized platforms. It remains to be seen how these trends will shape in the upcoming days.
Related Reading | Tether & USD Coin Hold The Key To Crypto’s Future: Santiment Report