02 March, 2024

CoinGecko’s Q2’23 Report Underscores Decline In Spot Trading Volume

8 months ago

26 Oct, 2023

A crypto industry report released by the crypto analytics platform CoinGecko underscored various industry trends. These included a decline in spot trading volumes on centralized and decentralized crypto exchanges in the first two quarters of 2023.

CoinGecko took to Twitter earlier today to share the crypto industry report with its followers:

According to the industry report, the crypto market displayed signs of consolidation in the second quarter of 2023. The crypto market capitalization grew by just 0.14% to $1.24 trillion as of June 30, 2023. Data compiled by CoinGecko indicated that April and May were relatively quiet months with no strong narratives influencing the crypto market.

CoinGecko’s industry report focused on a few key events from the first half of this year. The first was a significant decline of 43.2% in spot trading volume on centralized crypto exchanges. Binance was affected the most, with its market dominance tanking by 9% in the second quarter.

The second highlight was the volatility witnessed in Bitcoin’s price in the second quarter of 2023, with the flagship cryptocurrency ending the first half with a 6.9% gain. Interestingly, BTC outperformed the total crypto in the second quarter after it hit a yearly high of $30,694 following a series of spot Bitcoin ETF applications by traditional finance giants like BlackRock.

The third highlight of H1 ‘2023 was the shrinking of leading stablecoins like USD Coin (USDC) and Binance USD (BUSD). The market capitalization of USDC and BUSD decreased by $5.18 billion and $3.43 billion, respectively. Meanwhile, the world’s largest stablecoin Tether USD (USDT) added $3.48 billion to its market cap.

This period also saw a 30% increase in Ether staking after the Shapella fork enabled withdrawals of staked ETH. The amount of staked ETH topped 23.6 million in the second quarter of 2023. Lido remained the dominant staking provider, accounting for more than 31% of all staked Ether. The fifth highlight was a whopping 35% decline in the NFT trading volume, despite the growing popularity of Bitcoin Ordinals.



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