Despite the rising prices of Bitcoin and Ethereum, the second quarter of 2022 saw a 43% decrease in spot trading volumes on centralized cryptocurrency exchanges, according to recent data from CoinGecko.
Binance, currently facing civil charges in the U.S. and retreating from key markets, experienced a significant impact. CoinGecko’s Q2 report reveals that the leading exchange’s dominance has dipped from 62% to 51% within a span of three months, suggesting that the persistent “FUD” claims by Changpeng Zhao are not resonating with crypto traders.
This decline in trading volumes was also observed on decentralized exchanges, even with a 7% increase in Bitcoin’s price during the quarter.
Binance also encountered challenges in the stablecoin markets, with BUSD losing 45.4% of its market cap between April and June following the exchange’s decision to make True USD (TUSD) its primary stablecoin. This change led to TUSD becoming the quarter’s largest gainer after $1 billion was minted on the Tron network, a 50% increase. Tether, however, remains the dominant stablecoin, ending the quarter with a 66% market share.
CoinGecko’s data also paints a bleak picture for the NFT sector, despite the renewed interest in crypto collectibles sparked by Bitcoin Ordinals. Prices for Bored Ape Yacht Club have hit a two-year low, down 88% from their peak, marking a challenging period for high-profile projects. Overall NFT trading volumes dropped 35% to $3.15 billion in Q2. Solana, which has experienced multiple outages in recent years, saw demand plummet by a staggering 79% as major collections migrated to Ethereum and Polygon.
Ethereum, on the other hand, had a more positive quarter. According to CoinGecko, 83% of NFT trading took place on its blockchain during the quarter, although this dominance may begin to wane as 2023 progresses.
Despite the long-awaited activation of staked ETH withdrawals, the total amount of Ethereum held by validators increased by 30% in the second quarter, reaching just under 24 million. This amount, worth nearly billion at current market rates, suggests that crypto enthusiasts are eager to participate in staking now that there’s clarity over the retrieval of locked-up funds.