The second quarter of 2023 has proven to be an eventful one for the crypto market, with Bitcoin emerging as a clear winner amidst a series of unfortunate events for altcoins. CoinGecko’s comprehensive 2023 Q2 Crypto Industry Report sheds light on the market landscape and highlights key developments within the crypto space.
While Q1 was marked by vitality, Q2 took a different turn as the crypto market focused on consolidating gains. The total market cap only saw a marginal 0.14% increase, reaching $1.240 trillion on June 30, 2023.
April and May were notably quiet, lacking any dominant narrative. During this time, Bitcoin (BTC) and Ethereum (ETH) maintained stable positions, with BTC experiencing a 6.9% climb and ETH edging up by 6.0% in Q2.
Bitcoin’s Volatility Ends Q2 With A 6.9% Gain
BTC’s volatility shouldn’t be underestimated. It surged from $28,517 to $30,481, ending the quarter with a 6.9% gain. Bitcoin outperformed the overall crypto market, hitting a yearly high of $30,694 after BlackRock’s spot Bitcoin ETF filing on June 15.
The report also revealed that Stablecoins faced challenges in Q2, with the top 15 shrinking by 3.5%. USDC and BUSD saw significant drops, while Tether (USDT) gained 4.4%, securing a 66% market share.
ETH staking surged 30.3% in Q2, with 5.6 million ETH staked, reaching 23.6 million. Lido remained the leading provider, while Kraken and Coinbase lost dominance due to regulatory concerns.
Despite the growing popularity of Bitcoin Ordinals, NFT trading volume dropped by 35.0% in Q2. Ethereum continued to dominate NFT trading, but its temporary decrease in dominance in May allowed Bitcoin Ordinals to seize a notable portion of the market share.
Solana experienced a significant decrease in trading volume, partially due to the migration of major collections to Ethereum and Polygon, as per the CoinGecko report.
Both CEX and DEX faced challenges in Q2. CEX spot trading volume declined by 43.2%, with Binance losing its market share from 61% to 52% due to mounting regulatory pressure. In contrast, DEX’s spot trading volume fell by 28.1%, with Uniswap maintaining its dominance, holding 70% of the market share in May.
Nevertheless, the CoinGecko report provides valuable insights into the crypto industry’s performance during Q2, shedding light on trends and changes within the market.
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