Top Centralized Crypto Exchanges Experience Significant Drop in Spot Trading Volume in Q3 2023
In the third quarter of 2023, the top 10 centralized crypto exchanges (CEXs) saw a noticeable decline in their spot trading volume. According to the 2023 Q3 Crypto Industry Report by CoinGecko, these exchanges recorded a total trading volume of $1.12 trillion, marking a significant plunge from the previous quarter’s total of $1.42 trillion. This represents a 20.1% decrease in spot trading volume.
CEXs Face Turbulence and Decline in Market Share
Among the top CEXs, Binance, the world’s largest exchange, experienced a substantial drop in its market share. In September, Binance’s share fell to a yearly low of 44%, compared to a yearly high of 66% in February. Analysts attribute this decline to regulatory pressures and Binance’s exit from several markets, as well as the departure of some key executives.
Binance is currently facing scrutiny from regulators like the U.S. Securities and Exchange Commission (SEC) and the Department of Justice. The exchange is engaged in a legal battle with the SEC over allegations of securities law violations. These regulatory challenges have had a significant impact on Binance’s trade volume, especially within the U.S.
While Binance saw a decline, other exchanges experienced both gains and losses in their market shares. KuCoin dropped out of the top 10, while HTX (formerly Huobi) regained its position as the third-largest exchange. Upbit and Bybit also saw increases in their market shares, with gains of 4.6% and 6.9%, respectively.
Decentralized Exchanges (DEXs) Witness Drop in Spot Trading Volume
On the other hand, decentralized exchanges (DEXs) faced a 31.2% decrease in their spot trading volume during Q3. The total trading volume for the top 10 DEXs amounted to $105 billion. THORChain emerged as the largest gainer, experiencing a 113% increase in volume. Meanwhile, SushiSwap dropped out of the top 10, and Orca Finance claimed its spot with a 1% market share.
Market Cap of Stablecoins and NFT Sales
In addition to the decline in spot trading volume, the market cap of the top 15 stablecoins fell by 3.8% to $121.3 billion. Among these stablecoins, USD Coin (USDC) suffered the largest losses, amounting to $2.26 billion. Binance USD (BUSD) saw the most significant percentage decline, with a decrease of 45.3%, following Binance’s decision to remove support for the asset.
The trading volumes for non-fungible tokens (NFTs) took a sharp downturn in Q3. NFT sales plummeted by 55.6% from $3.67 billion in Q2 to $1.63 billion in Q3. This represents the worst quarter for NFT sales in almost three years, according to a report by CryptoPotato.
Overall, the total crypto market cap experienced a 10% plunge in Q3, and the average trading volume fell by 11.5% to $39.1 billion.
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