CoinGecko has recently published its 2023 Q3 Crypto Industry Report, which examines the performance of the crypto industry in the third quarter of 2023. One notable finding is that Binance, although still dominant, experienced a decrease in its market share among centralized exchanges, dropping to 44% in September.
The entire exchange industry witnessed a contraction during this period. Trading volume on centralized exchanges decreased by 20% compared to the previous quarter, with the top 10 crypto exchanges trading a total of $1,120 billion. Binance faced regulatory pressure and exited several markets, resulting in its market share declining from an annual high of 66% in February to a low of 44%.
On the other hand, Huobi (now HTX) regained its position in the top 10 and even rose to third place by volume, ending September with an 8% market share. Upbit and Bybit also gained market share, while Kucoin dropped out of the top 10. It is worth noting that only two US exchanges, Coinbase and Kraken, made it into the top 10.
In terms of market capitalization, cryptocurrencies experienced a decline of $119 billion or nearly 10% on a quarterly basis during Q3. However, this data does not reflect the recent surge in prices. The fall in trading volumes on exchanges contributed to this decline, with average daily volume decreasing by 11.5% compared to the second quarter.
Some cryptocurrencies experienced significant movements in market cap rankings. Solana (SOL) moved from 10th to 7th place, while TrueUSD (TUSD) moved from 23rd to 19th place. On the other hand, Litecoin (LTC) fell from ninth to 14th place and Avalanche (AVAX) dropped from 15th to 22nd place. Binance USD (BUSD) slipped further due to Binance’s announcement of its abandonment by February 2024.
The market capitalization of the top 15 stablecoins declined by 3.8% in Q3, reaching $121.3 billion. USDT (Tether) maintained its market cap, while other major stablecoins experienced losses. USDC (USD coin) saw the largest decrease at 8.3%, and BUSD’s decline was expected due to its impending abandonment. TrueUSD (TUSD) was the only stablecoin to gain market share, partly replacing BUSD on Binance.
CoinGecko co-founder and COO Bobby Ong expressed optimism about the convergence of traditional finance (TradFi) and decentralized finance (DeFi). Despite the low momentum in the crypto market during Q3, Ong believes that crypto must forge its own path forward.
Hot Take: Crypto Industry Report Highlights Binance’s Decreased Market Share and Overall Market Contraction
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