According to data from crypto aggregator CoinGecko’s report, the spot trading volume on centralized exchanges (CEX) for the second quarter of the year fell by 43.2%. The data also noted Binance’s, the largest exchange by market volume, share also dropped to 52%.
Introduction to CoinGecko’s Report
Spot trading volume refers to the total amount of cryptocurrencies bought and sold on CEX for immediate delivery.
As per the report, the total spot trading volume across the top 10 centralized crypto exchanges for the Q2 only accumulated $1.42 trillion—an approximately $98 billion less from January-March 2023.
“Despite showing signs of recovery in Q1, trading volumes failed to continue its upward trend in Q2,” CoinGecko noted.
Second to Binance, was South Korea’s largest cryptocurrency exchange by trading volume, on average its market dominance this quarter amounted to 6% –its prior average in Q1 was 8.3%.
Introduction to CoinGecko’s Report
In addition, CoinGecko revealed that Huobi and Crypto.com have lost their positions in the top 10, while Bybit and Bitget have emerged as the new entrants to the list. Bybit’s current market share is around 4% while Bitget is at 4.3%.
“Bybit and Bitget saw trading volumes increase by $13.1 billion and $1.5 billion respectively, and were the only exchanges in the top 10 to gain volume,” the report stated.
The other top centralized exchanges are OKX, Coinbase, Kucoin, MEXC, Gate, and Kraken.
Recently, BitPinas gathered the top 10 most popular cryptocurrency exchanges in the Philippines by utilizing Google Trends to keep track of search interest in the country for the last 90 days, starting from February 4 to April 30, 2023. The top ten are Binance, Coinbase, Coins.ph, PDAX, Kraken, OKX, ByBit, Gemini, Bittrex, and Houbi.
In 2022, the daily spot market trading volume for cryptocurrency exchanges has fallen below $10 billion, marking the first time since December 17, 2020, as reported by The Block’s Data Dashboard.
Binance’s Dominance and Regulatory Pressures
“With pressure mounting from regulators, Binance has seen its dominance slide from 61% in March 2023, to 52% in June 2023,” CoinGecko highlighted.
In June, when the news about the charges against Binance and its CEO Changpeng “CZ” Zhao emerged, the market share of Binance further went down to 52% from 54% from the previous month.
In a recent interview with Business Outlook of ANC, Kelvin Lester Lee, Commissioner of the Securities and Exchange Commission (SEC), stated that Binance and other unregulated entities must registered and acquire a license with the Commission or the Bangko Sentral ng Pilipinas (BSP) to be able to “operate legitimately.”
Last update stated that Binance was trying to acquire a local entity that already have the necessary authorizations since there is currently a three-year moratorium from the BSP on issuing licenses.
This article is published on BitPinas: CoinGecko: Centralized Exchange Trading Volume Fell 43.2%
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.
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