CEX Spot Trading Volume Drops in Q3
In the third quarter of 2023, the spot trading volume for the top 10 centralized crypto exchanges (CEXs) reached $1.12 trillion, which is a significant decrease from the previous quarter’s total of $1.42 trillion. This represents a 20.1% decline, according to the CoinGecko Crypto Industry Report.
Binance, the largest CEX in the world, experienced a notable decrease in its market share. Its share dropped to 44% in September from a high of 66% in February. This decline can be attributed to regulatory pressure and the platform’s exit from multiple markets, as well as the departure of key executives.
Regulators like the U.S. Securities and Exchange Commission (SEC) and the Department of Justice have been scrutinizing Binance for alleged securities law violations. This has had a negative impact on the platform’s trade volume, especially in the U.S.
While some exchanges saw gains and losses in their market shares, KuCoin dropped out of the top 10 and HTX (formerly Huobi) reclaimed its position as the third-largest exchange. Upbit and Bybit experienced increases in market share.
Decline in DEX Spot Trading Volume
The top 10 decentralized exchanges (DEXs) also saw a decrease in spot trading volume during Q3. The total volume amounted to $105 billion, marking a 31.2% drop. THORChain experienced a significant increase of 113% in volume, while SushiSwap fell out of the top 10 and was replaced by Orca Finance with a 1% market share.
Market Cap and NFT Trading Volume Decrease
The market cap of the top 15 stablecoins decreased by 3.8% to $121.3 billion. USD Coin (USDC) recorded the largest losses, while Binance USD (BUSD) saw a decline of 45.3% after Binance withdrew its support for the asset.
The trading volumes for non-fungible tokens (NFTs) also experienced a significant decline, dropping by 55.6% from $3.67 billion in Q2 to $1.63 billion in Q3. This marks the worst quarter for NFT sales in almost three years.
Overall Market Performance
In Q3, the total crypto market cap decreased by 10%, and the average trading volume fell by 11.5% to $39.1 billion.
Hot Take: Crypto Exchanges Face Turbulent Quarter
The third quarter of 2023 proved to be a challenging period for centralized and decentralized crypto exchanges alike. With regulatory pressure, executive departures, and market fluctuations, exchanges such as Binance faced significant obstacles that affected their trading volumes and market shares.
Additionally, the decline in spot trading volume for both CEXs and DEXs, as well as the decrease in market cap and NFT trading volume, highlights the overall volatility of the crypto market during this period.
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