Crypto trading volume down 23% in Q2 as Binance dominance declines

The total trading volume of the top 10 crypto exchanges in Q2 reached more than $8 trillion, representing a 23% decline compared to the previous quarter.

Binance maintained its position as the top exchange, despite a 3% decrease in market share to just over 50%. Bybit, Bitget, MEXC and Huobi all saw small increases in growth with OKX witnessing the largest increase of 1.9%, according to a report from crypto research firm TokenInsight. Gate, KuCoin and Coinbase saw slight declines, while Upbit fell 2.4%.

TokenInsight said Binance’s zero trading fee promotion that ended in March may be behind the decline, though the company also came under regulatory scrutiny during the quarter, with the Securities and Exchange Commission filing a lawsuit against the exchange, alleging it had violated U.S. securities laws.

The top four crypto exchanges by trading volume that include Binance, OKX, Bybit and Bitget command a combined market share of 85%.

Q2 crypto exchange market share. Image: TokenInsight.

Spot and derivative trading volume

The spot trading volume of the top 10 exchanges in Q2 2023 amounted to $1.3 trillion, marking a significant 44.8% decrease compared to Q1 and a 52.5% decline from Q2 2022. Binance continued to lead the spot market, despite falling 9% to a 55.3% share, while Bybit and Bitget experienced the biggest increases.

Derivative trading volume reached $6.7 trillion in Q2, showing a 14.6% decrease against Q1 and a 50.7% decline compared to Q2 2022. Binance again maintained its dominance within the crypto derivatives market, with a market share of 54%. OKX followed with an 18% market share, while Bybit and Bitget held third and fourth positions, respectively.

Of the top 10 crypto exchanges that have issued tokens, Bitget's BGB demonstrated the highest price increase in Q2, up 22.6%. Bitfinex's LEO and OKX's OKB tokens also performed well, with increases of 15.4% and 7.1%, respectively. However, all other exchange tokens experienced negative returns during the quarter.

Overall, the crypto market experienced a relatively stagnant Q2 compared to where it left off at the end of Q1, with the total market cap remaining around $1.2 trillion and bitcoin's price fluctuating around $30,000.