Amid another phase of the bear market, traders are leaving exchanges being disappointed by the low volatility of the major asset. Trading in fiat pairs is heavily affected as well, Kaiko data says.
Binance (BNB) lost 95% of its fiat trading volume
Binance (BNB), the largest global cryptocurrency exchange, sees its trading volume in fiat pairs losing 95% since a historic high registered in May 2021. Compared to early Q1, 2023, this indicator plummeted by 60%, per data shared by analytical platform Kaiko.
The research covered all crypto-to-fiat pairs with the euro (EUR), Great Britain pound (GBP), Turkish lira (TRY), Brazilian real (BRL), Australian dollar (AUD) and other major world fiat currencies. In 2023, the exchange imposed a number of restrictions, but, in fact, the most painful decline happened in 2022.
Trading activity declines on all platforms in the cryptocurrencies segment. In August 2023, trading activity on Ethereum-based NFT platforms was 90% lower compared to 2021 highs, as U.Today covered previously.
As a leader of the market, Binance (BNB) suffers the most from the negative effects of paltry price performance and decreased volatility. In Q2, 2023, only, its aggregated trading volume dropped by 70%.
Binance's (BNB) dominance remains strong despite regulatory attacks
In August 2023, Bitcoin (BTC) volatility dropped to an all-time low. The largest cryptocurrency was less volatile than the S&P500, NASDAQ and crude oil.
However, even in this stressful context, Binance (BNB) remains the leader of the global exchange landscape. As noted by DeFi researcher Thor Hartvigsen, Binance (BNB) still processes 20x larger trading volume compared to all decentralized exchanges combined.
Also, when it comes to spot trading volume, Binance (BNB) exceeds its closest competitor, Coinbase, by 300-400%, CoinMarketCap data shows. By derivatives trading volume, Binance (BNB) surpasses OKX by 170%.
Alex Dovbnya
Denys Serhiichuk
Tomiwabold Olajide
