In the first half of 2023, the cryptocurrency market experienced significant changes in exchange activities, according to a comprehensive analysis by CoinMarketCap. The report examines the general health, size, and level of activity of the crypto market, considering both the centralized market and the decentralized exchanges.

The top 20 exchanges contributed $1.67 trillion in total spot trading volume in Q2 2023, representing a 36% drop compared to the previous quarter. This decline indicates a slowdown in market activities, following active Q1 trading spurred by a doubling in Bitcoin price.

Binance maintained its dominant position in the market during the first half of 2023, with a total share of spot trading volume of 59.99%. The top five exchanges, including Binance, Coinbase, and Kraken, accounted for approximately 85% of the total spot market volume.

The market continues to offer a good number of available trading pairs and coins, with a steady increase in new listings. Binance dominated liquidity in the large-cap space, focusing its new listings on high-quality major coins.

BitForex and Bitget were among the most active in adding new coins during the April-June 2023 memecoin season.

Binance ($57 billion), OKX ($10 billion) and Bitfinex ($10 billion) all exhibited the most Proof of Reserve Assets. Despite recent market FUD causing capital outflows from Binance, the exchange still holds a fair amount of test-reserve assets.

In the first half of 2023, most exchange tokens achieved positive net returns, though most failed to outperform Bitcoin (+182% YTD).

Decentralized exchanges (DEXs) experienced their peak trading volume in March, with total DEX volume of $189 billion in Q2, a 24% decrease compared to Q1. Uniswap dominated the DEX market with a 57.5% market share, and its monthly volume has been on par with Coinbase’s spot volume.

The DEX to CEX ratio has risen to around 1:8, attributed to advances in DEX products, regulatory concerns about CEX, lower gas fees, and a higher proportion of crypto-native participants.

Approximately 80% of DEX trading volume occurred on Ethereum and its Layer2 chains in the first half of 2023. However, BNB has quickly gained a larger share of the DEX trading market in Q2.