in the last CoinMarketCap report (CMC), crucial insights into the health, size, and level of activity of the crypto market are explored. The report presents an in-depth analysis of centralized exchanges (CEX) and decentralized exchanges (DEX), covering important factors such as trade volume, market size, and coin offerings.
The report reveals that the top 20 exchanges contributed a total spot trading volume of $1.67 trillion in Q2 2023, reflecting a significant drop of 36% compared to the previous quarter. This indicates a significant slowdown in market activities after the intense activity of the previous quarter mainly driven by the doubling of the price of Bitcoin. These current trade volume figures reflect market conditions experienced during the recovery phase following the FTX crash.
Despite the general recession, Binance has maintained its dominant position in the market during the first half of 2023, maintaining a share of total spot trading volume of 59.99%. The top 5 exchanges, including Binance, Coinbase, and Kraken, accounted for approximately 85% of total spot market volume, contributing to favorable liquidity and 24-hour trading volume.
Furthermore, the report highlights that the market retains a good number of available trading pairs and coins, witnessing a continuous increase in new listings. Binance continues to rule liquidity in the large-cap space, with its new listings focusing primarily on high-quality major coins. During the April-June 2023 memecoin season, BitForex and Bitget were among the most active in adding new coins, considering the proportion of new coins in their total listings.
In terms of proof-of-reserve assets, Binance ($57 billion), OKX ($10 billion) and Bitfinex ($10 billion) lead the pack. Bitcoin and stablecoins form the majority of these reserve assets for most exchanges. Despite a $20 billion drawdown due to capital outflows in Q2 2023, Binance maintains a healthy amount of proof-of-reserve assets, illustrating a safe and diversified coin composition.
As for exchange tokens, the first half of 2023 shows that most of them achieved positive net returns, although they could not outperform Bitcoin, which has seen a 182% increase year to date.
The report also dives into DEX activities, noting that the peak trading volume of the top 15 DEXs occurred in March 2023. Total DEX volume for the second quarter reached $189 billion, a 24% decrease. compared to the first quarter total of $249 billion. Despite this, Uniswap maintained its dominance in the DEX market, with a 57.5% market share. However, the preference for CEX over DEX solutions has changed slightly, with the DEX to CEX ratio now around 1:8. This change can be attributed to recent advances in DEX products, growing market concerns about CEXs due to regulatory developments, a favorable environment with lower gas fees, and a higher proportion of crypto-native participants.
Approximately 80% of DEX trading volume occurred on Ethereum and its Layer2 chains during the first half of 2023. However, BNB has quickly gained a larger share of the DEX trading market in Q2, demonstrating a dynamic turnaround in the market landscape.
This report serves as a comprehensive guide to understanding the current status and trends of the crypto market, offering critical insights into both centralized and decentralized exchange activities in the first half of 2023.
You can download the report by the link https://s3.coinmarketcap.com/uploads/Final_Eng_Unveiling_The_Crypto_Market.pdf
