New research from crypto analytics firm Kaiko reveals the bloodshed on major crypto exchanges. The decrease in the trading volume of Binance, the largest of them, is remarkable.
Binance’s spot trading volume dropped by 70%!
According to new research from Kaiko, the past three months have brought a lot of pain to a cryptocurrency segment that has been severely damaged by regulatory scrutiny and the collapse in the US banking space. However, the June 2023 micro-rally gives the bulls some hope.
According to the data, Binance spot trading volume has dropped to 2020 levels. Coinbase, Kraken, OKX were also affected. All top centralized cryptocurrency exchanges closed Q2 of 2023 with a painful drop in spot trading volume. Binance, the largest stock exchange in the world, was the most damaged stock market, as expected. Accordingly, 70% of the total spot trading volume in all parities disappeared. Leading crypto analytics firm Kaiko has included this data in its new Quarterly Market Report.
Spot trading volume metrics slumped to levels not seen since Q4 2020, when Bitcoin (BTC) began emerging from the 2018-2020 bearish recession. Aside from its unprecedented regulatory aggression, Binance’s poor performance can also be attributed to its decision to reimpose fees on many Bitcoin trading pairs.
Leading crypto exchanges are also bleeding heavily
Binance’s key competitors OKX, Coinbase, Kraken and Huobi lost more than 50% of their spot trading volumes. The report also reveals that the trading volume in Euro-based parities fell to the lowest levels in two years. At the same time, trading activity in spot Bitcoin ETF products increased amid the frenzy about the potential launch of spot Bitcoin ETFs by asset management giants. The ProShares Bitcoin Strategy (BITO) fund has recorded $500 million plus daily trading volume for the fifth time in its history.
Despite the airdrop frenzy, Layer 2 tokens were the worst performers of Q2 2023. The situation in the altcoin segment also looks sad for crypto bulls. cryptocoin.comAs you follow, the SEC’s move has put the major altcoins under pressure. This includes almost all of the top 20. Meanwhile, Open Interest (OI) measurements fell 40% in just five days in mid-June.
Nearly all major token categories (following Kaiko L1 altcoins, L2 altcoins, DeFi tokens, DEX tokens, “BTC+ETH” and the like) close Q2 of 2023 in the red, while second-tier solutions for Ethereum (ETH) core governance assets were the worst performers. L1 tokens lost 24% of their capital in Q2 2023. Kaiko also stated that the BTC+ETH portfolio is one of the rare baskets that managed to close both Q1 and Q2 with positive growth. In the medium term, this duo remains the undisputed champion despite regulatory scrutiny and the liquidity crisis.
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