According to latest data from CoinGecko, spot trading volumes on centralised cryptocurrency exchanges decreased by 43% in the second quarter of 2022.
And Binance, which has been cutting workers as it withdraws from important markets and is being sued in the US, was particularly hard hit.
According to CoinGecko’s report for Q2, the largest exchange in the world has seen its market share decline from 62% to 51% in just three months, which is evidence that Changpeng Zhao’s frequent shouts of “FUD” aren’t resonating with cryptocurrency traders.
Despite a 7% increase in the price of Bitcoin over the course of the quarter, trading volumes have decreased, as was also observed on decentralised exchanges.
The issues with Binance also had an impact on the stablecoin markets; between April and June, when the troubled exchange switched to True USD (TUSD) as its default stablecoin, BUSD lost 45.4% of its market value. When the transfer occurred, TUSD saw a 50% increase and became the greatest gainer of the quarter when $1 billion was created on the Tron network. Tether, which continues to hold the top spot, finished the quarter with a 66% market share for stablecoins.
CoinGecko reports that despite Bitcoin Ordinals reviving interest in crypto collectibles, the NFT sector is likewise in a bleak state. Prices for top-tier projects have just plummeted to a two-year low for Bored Ape Yacht Club, down 88% from their high. In Q2, trading volume across all NFTs decreased 35% to $3.15 billion. Additionally, Solana, which has experienced numerous failures recently, saw a startling 79% decline in demand as major collections moved to Ethereum and Polygon.
Better news came for Ethereum, which has successfully resisted the danger posed by Bitcoin. According to CoinGecko’s data, its blockchain handled 83% of NFT trade throughout the quarter, but as 2023 goes on, there is a risk that this percentage could start to decline.
The total quantity of Ethereum locked up by validators increased by 30% in the second quarter, reaching just shy of 24 million, despite the activation of staked ETH withdrawals after a year-long delay. This shows that cryptocurrency fans are eager to participate in staking now that there is certainty over the recovery of locked-up cash, which is valued at close to $45 billion at current market pricing.