CoinGecko 2023 Q2 Crypto Industry Report

Table of Contents

Founders’ Note 2 DeFi Analysis 23

Market Landscape 3
- 2023 Q2 DeFi Overview
- 2023 Q2 Overall Crypto Market Overview - 2023 Q2 DeFi Multichain Market Share
- 2023 Q2 Crypto Dominance - 2023 Q2 DeFi Ecosystem Overview
- 2023 Q2 Cryptocurrency Price Returns - 2023 Q2 Cross-chain Bridge Liquidity
- 2023 Q2 Top 15 Stablecoins Overview - LSDFi
- 2023 Q2 Total Crypto Market Cap & Bitcoin vs. S&P 500
- 2023 Q2 Notable Events Timeline Non-Fungible Tokens (NFTs) 30
- The SEC’s Lawsuits against Binance and Coinbase - 2023 Q2 NFT Trading Volume across Top 8 Chains
- 2023 Q2 NFT Platform Trading Volumes
Bitcoin Analysis 11 - 2023 Q2 Notable NFT Collections
- 2023 Q2 Bitcoin Price vs. Trading Volume - NFT Lending
- 2023 Q2 Bitcoin Mining Hash Rate
- 2023 Q2 Bitcoin vs. Major Asset Classes Price Returns
- Spot Bitcoin ETF Applications in the US Exchanges 36
- 2023 Q2 Total Crypto Exchange Volumes
Ethereum Analysis 16
- 2023 Q2 Top 10 Spot Centralized Exchanges (CEX) Trading Volume
- 2023 Q2 Ethereum Price vs. Trading Volume - 2023 Q2 Top 10 Spot Decentralized Exchanges (DEX) Trading Volume
- 2023 Q2 Ethereum Consensus Layer Staking - 2023 Q2 Spot DEX Trading Volume Breakdown by Chain
- 2023 Q2 Ethereum Burn Rate - 2023 Q2 Top 10 Centralized Perpetual Exchanges Trading Volume
- 2023 Q2 Maximal Extractable Value (MEV) - 2023 Q2 Top 10 Centralized Perpetual Exchanges Open Interest
- May 2023 Memecoin Season - 2023 Q2 Decentralized Perpetual Protocols Trading Volume
- 2023 Q2 Decentralized Perpetual Protocols Open Interest

Analysts: Win Win Shaun Lee Weng Dee Nicholas Boey Zhong
CoinGecko 2023 Q2 Crypto Industry Report 1
Founders’ Note
After the exuberance of Q1, it was reasonable to expect that the crypto market would take some time to consolidate some of its gains. April and May were relatively quiet
months, particularly after Ethereum’s Shapella upgrade on April 12 as the market was absent of any strong overarching narrative. At this point the familiar adage of “sell in May
and go away” seemed like it was going to ring true.
Ethereum’s successful Shapella upgrade, and subsequent lack of withdrawals after it was activated, quickly turbocharged liquid staking derivatives as more people jumped in to
stake their ETH. At the end of Q2, more than 17% of the total ETH supply had been staked. While concerns over security and concentration risks remain, staked ETH has now
clearly emerged as a core DeFi primitive for people to build off for years to come.
There is never a dull moment in crypto, and this quarter’s drama was promptly served up by the US SEC in June. Continuing its streak of enforcement actions in 2023, the
regulator filed lawsuits against Binance and Coinbase, two of the largest global centralized exchanges for amongst other things, operating illegal securities exchanges.
As both exchanges gear up to challenge the SEC in court, the future of crypto regulations in the US is also at stake. In making its case, the SEC named a slew of altcoins as it
seeks to enforce its jurisdiction. If the courts agree with the SEC’s definition, there will be significant ramifications for the industry and how projects can operate in the US.
Despite the SEC’s enforcement actions being long rumored, the news still sent shockwaves throughout the market, with prices and liquidity both falling rapidly. At one point it
looked like the total crypto market cap would fall below $1 trillion as BTC dipped under $25,000, and altcoins named in the lawsuit also took significant hits.
Just as the market looked set for capitulation, the mood took a drastic turn as news broke that BlackRock, the world’s largest asset manager had filed an application with the
SEC to offer a spot bitcoin ETF. The SEC has over the years resisted approving a spot bitcoin ETF, but BlackRock jumping into the fray has reignited hopes. Other asset managers
such as WisdomTree, Invesco and Fidelity have quickly followed suit and filed similar applications.
It is uncertain whether the SEC is more amenable to these latest applications from traditional incumbents, but the
news swiftly sent Bitcoin back above $30,000. This resulted in the total crypto market cap closing out Q2 2023 at
$1.24 trillion, essentially back where it started the quarter, and still almost 50% up year-to-date.
While the regulatory landscape for crypto within the US remains fraught, significant progress is being made in other
parts of the world. Europe passed its MiCA regulations this May, Hong Kong rolled out its regulations for exchanges
in June, and the UK recently passed a bill to bring crypto under financial regulations. The allure of the US market will
always be there, but at this point in time, crypto projects should probably look elsewhere for more welcoming
hosts.
As we’re writing this, a new cycle of FUD has just struck NFTs, particularly so called “bluechip” collections like Azuki,
Apes and Moonbirds, which experienced significant dips following recent controversies. A lot has been said about
mismatched expectations between founders vs holders, but NFT projects need to evolve beyond just being simple
JPEGs, and it looks like there’s going to be a lot of growing pains. We await to see how many of these projects will
prove themselves to be true blue chips once the dust settles.
The crypto industry certainly has its share of dramatic moments which can sometimes overshadow the real
progress being made by builders! We've yet to mention the introduction of the new zkEVM Layer 2s, Uniswap's V4
announcement, or more real world assets making their way onto public blockchains. On the CoinGecko end, we’ve
progressively rolled out our NFT floor price tracker on both web and mobile, expanded our API endpoints for users,
and continuously improved our on-chain DEX tracker, GeckoTerminal. Do check out these exciting updates and we Bobby Ong TM Report
Lee
CoinGecko 2023 Q2 Crypto Industry 2
welcome your feedback — meanwhile, enjoy our Q2 report and the summer! COO CEO
MARKET LANDSCAPE

CoinGecko 2023 Q2 Crypto Industry Report 3

2023 Q2 Overall Crypto Market Overview
Total crypto market cap experienced some volatility in 2023 Q2 but ended where it began the
quarter at $1.2T

+0.14%
Total Market Cap & Spot Trading Volume (Jan – Jun 2023)

Market Cap Trading Volume

Tota l Volume Tra ded Tota l Mar ket Ca p Trendl ine (Total Marke t Cap) Total Market Cap
$1.6T $300B Change in 2022 Q2

Total market cap ended Q2 2023 where it

$1.4T $1.34T began at $1.2T, with only a +$1.7B change in
$250B
$1.24T $1.24T absolute terms.
$1.2T
Average daily trading volume however
$200B decreased 42.7% QoQ and sits at $44.2B.
$1.0T $1.06T
A large portion of volume had fallen off in
$0.8T $150B late March after Binance removed their
zero-fee trading incentives for BTC. In Q2,
volumes continued to gradually decline.
$0.6T
$100B
Within the Top 30, some notable movers
include LTC which broke into the Top 10,
$0.4T
climbing from #13 to surpass MATIC at
$50B #9. BCH also climbed from #27 to #18.
$0.2T Both tokens rallied following their listing on
EDX Markets.
$0.0T $0B
BUSD continues to slide from #12 to #18.
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 Jul-23 TUSD (#23) and ICP (#30) entered the Top
30, while FIL and HBAR fell out.

Source: CoinGecko CoinGecko 2023 Q2 Crypto Industry Report 4

2023 Q2 Crypto Dominance
Bitcoin dominance continues to climb as investors rotated out of altcoins into ‘majors’, despite a
shortlived memecoin season in May
Crypto Dominance (Jan – Jun 2023) 47.9% 18.8%
3.2% 1.0%

100%
6.7% 3.0%
90% 0.3% 1.0%

2.2% 2.0%
80%

70% 0.4% 0.3%

0.8% 18.6%
60%

50% 0.3% 2.4%

40% Bitcoin continues its climb with a 3.2% increase

in dominance to 47.9%, levels it has not reached
30% since 2021 Q2. ETH also climbed slightly by
1.0% in 2023 Q2. USDT, USDC, XRP and ADA
held on to their share of market, while BNB
20%
recorded a slight decline of 1.0%.

10%
‘Others’ recorded the largest fall of -2.4% in
dominance, indicating a rotation of capital from
0%
lower cap altcoins into ‘majors’ like Bitcoin and
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 Ethereum.
BTC ETH USDT BNB USDC XRP ADA Other s

Source: CoinGecko CoinGecko 2023 Q2 Crypto Industry Report 5

2023 Q2 Cryptocurrency Price Returns
With the exception of some CEX tokens, altcoins bled against BTC and ETH

Within the Top 5 cryptos, BTC (+7%) and ETH (+6%) continued their Q1 climb
and still ended 2023 Q2 in the green, while BNB (-24%), XRP (-12%) and
ADA (-28%) saw double digit losses, returning some of their gains from last
quarter.

ADA and BNB saw the largest losses, after both were listed as securities in the
SEC’s lawsuits against Binance and Coinbase.

With the exception of AAVE (-5%), DeFi tokens UNI (-13%), LINK (-17%), LDO (-
16%), and GRT (-28%) have all dipped by double digits, fading some of their
2023 Q1 recovery. Their declines started around mid-February which coincided
with BTC pullback.

Top exchange tokens took less damage compared to other sectors, with BNB
(-24%) taking the largest loss likely as a result of Binance being sued by the
SEC.

LEO (+13%) and OKB (+6%) saw some gains, while WhiteBit exchange
token WBT took KCS’s place at #5 following its listing on Bitfinex and the
launch of its own blockchain testnet.

After a rather strong recovery in 2023 Q1, the play-to-earn sector has been hit
the hardest, where the Top 5 P2E tokens fell by 30-40%. WEMIX which
entered the Top 5 in 2023 Q1 has fallen out again, with GALA taking its place.

Source: CoinGecko CoinGecko 2023 Q2 Crypto Industry Report 6

2023 Q2 Top 15 Stablecoins Overview
USDT continues its dominant run and now has 66% of market share, however overall stablecoin
market saw net outflows

-3.5%
Top 15 Stablecoins Market Cap Breakdown (Jan – Jun 2023)

Market Cap
USDT: 61% BUSD: 6% USDT: 66% BUSD: 3%
$160B USDC: 25% TUSD: 2% USDC: 22% TUSD: 2% Top 15 Stablecoins Market
DAI: 4% Others: 3% DAI: 3% Others: 3%
Cap Change in 2023 Q2
$140B
$130.8B
$126.3B Top 15 Stablecoins shed ~3.5% or $4.6B in
$120B
market cap in 2023 Q2 and now sits at
$126.3B.

$100B
USDT gained the most in absolute terms
during Q2, while BUSD continued its slide
$80B after Paxos announced its wind-down with
$3.4B removed from circulation (-45%).
$60B DAI saw losses in Q2 but still took BUSD’s
place as the third largest stablecoin.
$40B
TUSD spiked 50% in market cap after
Binance minted ~$1B worth on the Tron
$20B network and implemented zero-fee trading
USDT USDC DAI BUSD TUSD Other s (6-15) on TUSD pairs. However, near the end of Q2
$0B there was FUD due to one of its custodians,
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 Prime Trust, as well as its auditor.

Outside the Top 5, GUSD (+44.4%), flexUSD

$83.3B $27.4B $4.3B $4.1B $3.1B (+33.4%) and USDP (+30.0%) were the
biggest gainers while USTC was the
+$3.48B (+4.4%) -$5.18B (-15.9%) -$0.76B (-14.9%) -$3.43b (-45.4%) +$1.02B (+50.0%) biggest loser (-43.2%).

Source: CoinGecko CoinGecko 2023 Q2 Crypto Industry Report 7

2023 Q2 Total Crypto Market Cap & Bitcoin vs. S&P 500
The S&P 500 continues to climb while total crypto market cap stays flat, resulting in correlation
turning moderately negative
Total Crypto Market Cap & Bitcoin vs. S&P 500 (Jan – Jun 2023) Bitcoin-S&P500 correlation flipped from
low positive in 2023 Q1 (0.31) to slightly
negative in Q2 (-0.09). The S&P went on a
Market Cap S&P 500 run improving from ~4,000 to ~4,400
Tota l Crypto Ma rket Cap Bitcoin Market Cap S&P 500 points in Q2 on the back of strong
$1.4T 5,000 performance from mega-cap and AI-
related stocks, while crypto remained flat.
4,800
$1.2T Meanwhile, correlation between total
4,600 crypto market cap and the S&P 500 was
moderately negative at -0.54.
$1.0T 4,400
Correlation between total crypto
4,200 market cap and bitcoin in Q2 2023 was
$0.8T
lower than usual at 0.84, as a result of
4,000 bitcoin holding its value better than the
$0.6T
overall crypto market.
3,800

Total crypto market cap ended flat in Q2

$0.4T 3,600 2023 but was ~3x more volatile than the
S&P 500 which climbed by 7.9%.
3,400
$0.2T Meanwhile, similar to the S&P 500, bitcoin
3,200 market cap climbed by 7.3% but had a Q2
annualized volatility of 40.6%, 3.3x
$0.0T 3,000 higher than the S&P 500’s Q2
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 annualized volatility of 12.3%.

Source: CoinGecko, MarketWatch CoinGecko 2023 Q2 Crypto Industry Report 8

2023 Q2 Notable Events Timeline
Q2 saw the SEC suing Coinbase and Binance, followed by BlackRock filing for BTC ETF, and also
several other notable highlights – ETH Shapella Upgrade & May Memecoin Season

Pancakeswap v3 Opensea launched

Ethereum
launched; Opensea Pro; Blur’s lending Balaji paid out Sui launched
Shanghai (Shapella)
Twitter logo replaced Euler hacker returned market, BLEND $1.5M BTC bet on Mainnet
Upgrade
by Doge funds launched

3 Apr 4 Apr 12 Apr 1 May 2 May 3 May

Coinbase Derivatives Reuters reported Binance Lido Finance (LDO)

Multichain CEO Fintoch rugpulled PEPE hits $1B
launched Institutional co-mingled user funds in enabled withdrawals
went missing for $32M market cap
BTC and ETH futures 2020 and 2021 for stETH

2 Jun 31 May 24 May 23 May 15 May 5 May

BlackRock files for ZachXBT received over EDX markets backed

Atomic Wallet SEC sued Uniswap v4 spot BTC ETF; $1M in donations by Fidelity, Schwab
exploited for $35M Binance & Coinbase announced ‘The Goose’ NFT sold following defamation and Citadel launched
for $11M on Sotheby’s lawsuit

3 Jun 5-6 Jun 13 Jun 15 Jun 18 Jun 20 Jun

CoinGecko 2023 Q2 Crypto Industry Report 9

 The SEC’s Lawsuits against Binance and Coinbase

Tokens Named by SEC as Securities

vs vs

June 5, 2023 March 23, 2023

The SEC files lawsuit against Binance, Binance.US, and Coinbase receives Wells Notice from the Tokens named Tokens named
founder CZ. The suit alleges that the parties: SEC over their staking offering and asset in Binance SOL in Coinbase
§ Operated as an unregistered Exchange, Broker and listings. Lawsuit Lawsuit
ADA
Clearing Agency through Binance.com and Binance.US
ATOM MATIC CHZ
§ Offered and sold unregistered securities through BNB,
BUSD, and its BNB Vault and Simple Earn offerings BUSD FIL NEAR
§ Made false and misleading statements to investors BNB SAND FLOW
about controls they claimed to have implemented on COTI MANA ICP
June 6, 2023
Binance.US, specifically claims that Binance.US operated VGX
The SEC files lawsuit against Coinbase. The ALGO
independently of Binance.com, as well as surveillance &
suit alleges that Coinbase: AXS DASH
controls put in place to prevent manipulative trading.
§ Operated as an unregistered Exchange, NEXO
Broker and Clearing Agency
June 6, 2023 § Operated as an unregistered Broker
The SEC seeks court order to freeze assets of Binance.US. through its Coinbase Prime and
Coinbase Wallet offerings As part of its lawsuits, the SEC had named a list of tokens as
securities in order to establish its jurisdiction.
§ Offered and sold unregistered securities
June 9, 2023 through its Staking Program
Binance.US announces that it is freezing all USD deposits Following this, many projects immediately published
and withdrawals, stopping all USD trading, and will denials that their token constituted securities. However
transition to become a crypto-only exchange. absent clear regulatory guidance, this matter will likely have
to be settled in court.

June 17, 2023 However the impact of the lists can already be felt as the
The court denies the SEC’s earlier request filed on June 6 to June 29, 2023
Coinbase files its answer and notice of tokens named by the SEC all saw their prices tumble after
freeze Binance.US’ assets. In a court-ordered agreement, the list was published, and US-based platform Robinhood had
Binance.US’ customers’ assets will be repatriated back to intent to file a motion to dismiss the SEC’s
lawsuit. already removed SOL, MATIC and ADA from trading.
the US and USD withdrawals will be re-enabled.
CoinGecko 2023 Q2 Crypto Industry Report 10
Source: US SEC; various news outlets
BITCOIN ANALYSIS

CoinGecko 2023 Q2 Crypto Industry Report 11

2023 Q2 Bitcoin Price vs. Trading Volume
BTC saw some volatility in 2023 Q2 but ends the quarter with a 6.9% gain, outperforming the
overall crypto market

+6.9%
Bitcoin
BitcoinPrice
Price and SpotTrading
and Spot TradingVolume
VolumeApr(Jan
‘21 -–Oct
Jun'21
2023)

BTC Price Volume Pri ce Trading Vol

Bitcoin price return in
$35,000 $100B 2023 Q2
Yearly high
$30,694 $90B
In 2023 Q2, BTC outperformed the overall
$30,000
$30,481 crypto market cap with a +6.9% return.
$80B
$28,517 After a strong rally in Q1 up until mid-April,
$25,000 $70B
Q2 low BTC retraced almost ~18% to $25,107. It
$25,107 then rebounded to reach a new 2023 high at
$60B $30,694 following the announcement of
$20,000
BlackRock’s spot bitcoin ETF filing.
$50B

$15,000 While prices continue trending up, average

$40B daily trading volume for 2023 Q2 sits at
$13.8B, a 58.7% decline QoQ.
$10,000 $30B

Notable developments for Bitcoin this

$20B
quarter include the continued rise of
$5,000 Ordinals with the introduction of BRC-20
$10B tokens, as well as a slew of spot bitcoin
ETF filings following Blackrock’s surprise
$0 $0B filing (see slide 15).
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23

Source: CoinGecko CoinGecko 2023 Q2 Crypto Industry Report 12

2023 Q2 Bitcoin Mining Hash Rate
Bitcoin’s total hashrate and mining difficulty continues to trend upwards in 2023 Q2, hitting all-
time highs; meanwhile surge in transaction fees from Ordinals delivers boon for miners

+22.0%
Bitcoin's Total Hash Rate (Jan – Jun 2023)

Hash Rate TH/s

Bitcoin’s hash rate increase
500m in 2023 Q2
All-time High Mining hash rate continues to climb,
450m 441m TH/s
increasing by 22% QoQ and hitting
another ATH of 441m TH/s on 1 May.
398m TH/s Mining difficulty exceeded the 50 trillion
400m
mark for the first time ever on June 13.

350m For only the fifth time in history, average fee

paid per block surpassed the block
subsidy for a few hours on May 8 due to
300m Ordinals boon
326m TH/s
The mining industry continues to develop:
250m • Miners continue to expand - Riot
purchased 33,280 ASIC miners;
CleanSpark continued its Q1 buying
200m spree with another 57,000 miners in Q2.
• The proposed “anti-mining” US bill
150m which calls for a 10% tax on electricity
used by miners has fell through in May,
while favorable bitcoin mining bills
100m have passed in Texas and Arkansas.
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 • Jack Dorsey’s open-source, 5nm bitcoin
mining chip prototype completed.
Source: Blockchain.com CoinGecko 2023 Q2 Crypto Industry Report 13
2023 Q2 Bitcoin vs. Major Asset Classes Price Returns
After a stellar 2023 Q1, Bitcoin still outperforms most major asset classes in Q2, only lagging
behind the NASDAQ and S&P500
Bitcoin vs. Major Asset Classes (Apr – Jun 2023)

Price
Return BTC Cr ude Oil Gol d TLT DXY NASD AQ CNY JPY
15.0%

10.0%

5.0%

0.0%

Courtesy of the rally on mega-cap tech stocks, the

-5.0% NASDAQ (+14%) and S&P 500 (+8%) were the top two
performers of 2023 Q2. BTC (+7%) came in third place.

-10.0% Crude oil (-12%) saw the largest decline due to a

combination of factors, including fears of a US recession,
China’s declining economic growth, as well as higher-
-15.0% than-expected oil supply from Russia. Concerns
surrounding China’s economy also contributed to CNY’s
(-5%) fall.
-20.0%
Apr- 23 May-23 Jun-23 JPY (-8%) saw the second-largest loss, as the Bank of
Japan is expected to keep interest rates low despite the
opposite action taken by other central banks.
Source: MarketWatch CoinGecko 2023 Q2 Crypto Industry Report 14
Spot Bitcoin ETF Applications in the US
BlackRock’s surprise application set off a race between traditional asset managers to jump in to
the fray, and sent the market into a bullish mood
Spot Bitcoin ETF Applications Filed in 2023 The SEC had approved futures-based bitcoin ETFs in the
past, notably $BITO which was launched in October 2021.
However it had thus far resisted approving a spot bitcoin
Issuer Spot Bitcoin ETF Name Application Date
ETF, having received ~30 prior applications.

ARK 21Shares Bitcoin ETF April 25 The main reason cited by the regulator related to concerns
surrounding the lack of regulations and risk of market
manipulation in the underlying spot markets.
iShares Bitcoin Trust June 15
BlackRock’s surprise filing for a spot bitcoin ETF on June 15
set off a race to file similar applications, with a total of 8
asset managers having submitted thus far.
Bitwise Bitcoin ETP Trust June 16

BlackRock’s application marks a particular change of

stance by BlackRock CEO Larry Fink, who in 2017 called
Invesco Galaxy Bitcoin ETF June 20
Bitcoin “an index of money laundering”.

Before its ETF application, BlackRock had announced a

WisdomTree Bitcoin Trust June 20 partnership with Coinbase in August 2022 to help clients
manage and trade their bitcoin. In April 2022 it also
announced an investment in Circle.
Valkryie Bitcoin Fund June 21
To address the SEC’s initial feedback, all eight applicants
have named Coinbase as the market surveillance
VanEck Bitcoin ETF June 22 provider for the Bitcoin spot markets.

The announcements caused the discount on Grayscale’s

Wise Origin Bitcoin Trust June 29 GBTC to narrow above -30%, the first time since May 2022,
on hopes that GBTC will be converted to an ETF.
Source: Bloomberg, US SEC CoinGecko 2023 Q2 Crypto Industry Report 15
ETHEREUM ANALYSIS

CoinGecko 2023 Q2 Crypto Industry Report 16

2023 Q2 Ethereum Price vs. Trading Volume
Price of ETH gained by 6% in 2023 Q2, slightly less than Bitcoin but still outperforming the
overall crypto market
Ethereum Price and Spot Trading Volume (Jan – Jun 2023)

ETH Price 2023 Q1 Price Return 2023 Q2 Price Return Trading Vol. +6.0%
+49.8% Volume Pri ce +6.0% ETH Price Return in 2023 Q2
Yearly High
$2,200 $2,118 $120B
ETH closed 2023 Q2 at $1,934, representing
$2,000 $1,934 a 6.0% increase during the quarter.

$1,800 $100B
It started the quarter at $1,792 before
$1,792
hitting a yearly high of $2,118 in mid-April.
$1,600 This coincided with the Shapella upgrade on
$80B April 12. Despite fears that early stakers
$1,400 would withdraw and sell their staked ETH,
the price of ETH rose above $2,000 for the
$1,200
first time in 2023, before dipping back
$60B
$1,000
below those levels.

$800 It had been a busy quarter for Ethereum’s

$40B zero-knowledge projects:
$600 • zkSync unveiled plans for Hyperchains, a
series of custom blockchains.
$400 $20B • Starknet is preparing to launch a testnet
$200 zkEVM in the form of Kakarot in its path
to becoming EVM-compatible.
$0 $0B • Polygon proposed to upgrade its PoS
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 Jul-23 network to a zkEVM validium

Source: CoinGecko CoinGecko 2023 Q2 Crypto Industry Report 17

2023 Q2 Ethereum Consensus Layer Staking
ETH staking sees strong growth (+30.3%) in 2023 Q2 after withdrawals were enabled; Lido is still
leading the way while Kraken loses market share
Total Staked ETH in Validators (Jan – Jun 2023) 31.9% 9.6%
Staked ETH 2023 Q1
Total Staked ETH +13.6%
2023 Q2
Total Staked ETH +30.3% 5.2% 3.4%
23,596,678
24M

22M 2.8% 1.9%

20M
18,006,199
18M 1.2% 34.2%
16M
Total staked ETH hit 23.6 mil by the end
of 2023 Q2, a gain of 5.6 mil QoQ. Total
14M
staked ETH climbed at a faster rate
12M compared to 2023 Q1, where 2.2 mil were
staked.
10M
This is a clear signal that holders now have
8M more confidence in staking ETH after
withdrawals were enabled post-Shapella.
6M
Lid o Co in base Kraken Bin an ce Lido remained the dominant staking
4M
Staked.us Bitcoinsuisse Stakefish Figment provider, with 31.9% of all staked ETH, a
2M Ro cket Pool Huo bi Ab yss Finan ce Stakewise slight increase from 31.4% in Q1.
Frax Others
0M Kraken had a 36.2% drop in staked ETH as
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 Jul-23 it winds down its staking product in the US
following a settlement with the SEC.
Source: Glassnode CoinGecko 2023 Q2 Crypto Industry Report 18
2023 Q2 Ethereum Burn Rate
ETH experienced its second net-burn quarter, largely thanks to the mid-May memecoin season;
The Ethereum network experienced a net burn of 203k ETH in 2023 Q2

381K
ETH Burn vs. Emission Rate (Jan – Jun 2023)

ETH Emissions Burned

Peak of
memecoin ETH Burned in 2023 Q2
14,000
season

12,000 2023 Q2 saw over 381k ETH burned, while

179k were emitted. This resulted in 203k
10,000 ETH being taken out of circulation this
quarter, another ATH in terms of net burn.
8,000

Most of the ETH burned this quarter

6,000 occurred in May. The largest one-day burn
occurred on 5 May, where 14.6k ETH was
4,000 burned at the peak of memecoin season.

2,000 Notably, during the week of 5 – 11 May,

81,553 ETH was burned, representing 21.4%
0 of all ETH burned in Q2.
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23
Uniswap remained the dominant ETH
Top 6 Burn Leaderboard Q2 burner in Q2, burning 97.5k ETH.

1 2 3 4 5 6 Meanwhile, NFT exchanges Blur and

OpenSea were edged out by XEN and
Uniswap ETH Transfers USDT XEN Projects Arbitrum MetaMask MetaMask. This coincides with the slump in
97.5k ETH 23.7k ETH 15.6k ETH 10.0k ETH 9.9k ETH 8.9k ETH NFT trading volumes.

Source: Dune Analytics CoinGecko 2023 Q2 Crypto Industry Report 19

2023 Q2 Maximal Extractable Value (MEV)
Even though MEV transaction volumes have fallen by 87%, MEV bots still increased their profits
by 11% in 2023 Q2, with the majority going to sandwich attackers

$27.2M
MEV Monthly Transaction Volume and Profits (Jan – Jun 2023)

Volume Sandwich Attack Arbi trage Liquidation

Profits Generated by MEV
$50B
Transactions in 2023 Q2
$40B $8B
As transaction volumes on DEXs have fallen
off significantly in 2023 Q2, MEV bots also
$30B
were noticeably less active, as MEV
transaction volumes shrank by 87.0%
$20B
$36B from $44B in March to $6B in June 2023.

$10B
$10B $14B Be that as it may, MEV searchers are still
$7B $7B $4B raking in the cash, increasing their
$0B
earnings by 11.0% from $24.5M to $27.2M
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23
this quarter. MEV bots achieved their most
Sandwich Profits Arbi trage Pr ofits Liquidation Profi ts profitable month of Q2 in May during the
Profits
height of the recent memecoin season.
$20M
Although sandwich attacks are still the most
$15M
$2M active form of MEV, quarterly volumes have
$11M plunged by 69.4% from $59B to $18B.
$10M $3M

$2M Yet, sandwich attackers have increased

$5M $9M
$3M $7M $2M their profits in 2023 Q2 by 80.1%, In other
$2M $5M
$2M $3M words, sandwich bots are making more
$0M $1M
on average with each “attack”.
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23

Source: EigenPhi CoinGecko 2023 Q2 Crypto Industry Report 20

May 2023 Memecoin Season
May 2023 Memecoin Season gave rise to PEPE and a new batch of memecoins, including BRC-20
tokens on Bitcoin

1813x
May 2023 Memecoin Season Price Returns
Returns (PEPE) Returns (Others)
251x
2048x 1589x Peak returns from PEPE**
1024x

512x 201x Memecoin Season arrived in 2023 Q2,

183x capturing the attention of traders. PEPE
256x emerged as the frontrunner, offering early
investors returns of ~1813x** at its peak.
128x Its “appeal” stem from the use of Pepe the
151x
142x
Frog as its imagery.
64x

32x At peak, PEPE achieved a market cap of

96x 101x $1.8 billion following its Binance listing
16x announcement. However, the price dipped
59x after its actual listing.
8x

4x
51x AIDOGE claimed second spot in terms of
24x
returns, with returns of up to 235x** at its
2x peak. AIDOGE distinguished itself by
launching on Arbitrum, and tokens were
1x 1x distributed to those eligible for ARB airdrop.
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 Days
The Introduction of BRC-20 tokens through
Bitcoin Ordinals brought memecoins to the
Bitcoin network, driving a surge in trading
PEPE AIDOGE LADYS BOB WOJAK BITCOIN volume in May 2023. $ORDI emerging as
the most popular one, reaching a peak
Source: GeckoTerminal market cap of $600 million.
*Comparison of Returns is based on the coins' performance after they first reached a market capitalization of $1M. The price of the token at that point is used as a
benchmark for calculating returns. Day 0 represents the day the market cap of the token first hits $1M. CoinGecko 2023 Q2 Crypto Industry Report 21
**Peak return is calculated based on the intraday high price. Price returns on chart are calculated based on the daily closing price and will not match the peak price.
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CoinGecko 2023 Q2 Crypto Industry Report 22
DEFI ANALYSIS

CoinGecko 2023 Q2 Crypto Industry Report 23

2023 Q2 DeFi Overview
While the DeFi sector saw a temporary spike in market cap following Ethereum’s Shapella
upgrade, it has only been downhill since before seeing a slight rebound at the end of June

-5.2%
Total DeFi Market Cap and DeFi Share of Overall Market (Jan – Jun 2023)

Market Cap Tota l DeFi Ma rket Cap DeFi Share of Ma rket (DeFi/Global Ma rket Cap) % of Market
DeFi Market Cap Decrease in
$60B 4.7%
2023 Q2
SEC
Ethereum charges 4.6%
Shapella Binance & Even though the DeFi market cap fell
$55B upgrade Coinbase slightly by 5.2% from $51B in 2023 Q1 to
4.5% $48B in 2023 Q2, it still underperformed
2023 Q1
$51B the overall crypto market, shrinking its
market share.
2023 Q2 4.4%
$50B $48B
4.3% The success of the Shapella upgrade in
April brought DeFi’s market cap to a
quarterly high of $56B, yet DeFi’s
$45B 4.2%
dominance only saw a minor increase from
4.0% to 4.2%.
4.1%

$40B After the SEC charged Binance and

TradFi 4.0% Coinbase in June, DeFi’s market cap saw an
banking impressive recovery, bouncing 16.4% from
turmoil 3.9% $42B on 15 June to on $48B by the end of
$35B June.
3.8%
Unfortunately, the rest of the crypto
markets also moved higher, causing DeFi’s
$30B 3.7% dominance to fall further below to 3.9%.
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23
CoinGecko 2023 Q2 Crypto Industry Report 24
Source: CoinGecko
2023 Q2 DeFi Multichain Market Share
Ethereum continues to strengthen its dominance and now controls nearly 70% of multichain
TVL, while Tron breaks ahead of the pack to #2 as BSC falls off

+1.9%
Multi-chain Total Value Locked (TVL) Breakdown (Jan – Jun 2023)

Total TVL
Market Multi-chain DeFi TVL Increase
Share $54B $62B $62B $67B $65B $63B
in 2023 Q2
100%
Despite fears of massive withdrawals of
90%
6% staked ETH after the Shapella upgrade, it
10% 9% 8% 7% 7%
6% did not come to pass and instead Ethereum
80% 7% 7%
8% 8% 7% has continued to increase its dominance,
8% 9% increasing its TVL share from 67% to 69% in
70% 8% 8%
9% 8%
2023 Q2, attracting an additional $1.6B.
60%
While 2022 saw Tron going neck-and-neck
50% with BNB Smart Chain (BSC) for the second
spot, the former has pulled further ahead in
40% TVL due to net outflows from BSC. While
67% 68% 68% 69% Tron increased its TVL by 6.8% from $5.4B
65% 65%
30% to $5.7B in 2023 Q2, TVL on BSC fell by
30.9%, from $5.0B to $3.5B in the same
20% period.

10%
In the past quarter, TVL on zero-knowledge
0%
rollups such as zkSync Era and Polygon
zkEVM have risen exponentially. As the next
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23
potential targets for airdrop hunters, TVL on
Ethereum Tron Other s BSC Arbi trum Polygon zkSync Era has grown from $27M on March
Optimism Avalanche Sola na Mixin Cr onos Kava
31 to $180M at the end of June.

Source: DefiLlama CoinGecko 2023 Q2 Crypto Industry Report 25

*Monthly TVL is calculated by taking the average TVL daily for each month.
2023 Q2 DeFi Ecosystem Overview
While overall DeFi tokens market cap declined by $5.2B (-17.6%), liquid staking governance
tokens and lending tokens increased their market share relative to other DeFi segments
Market Cap of Each DeFi Category* (2023 Q2)

After a +65.2% increase in 2023 Q1, the overall DeFi market cap fell by
Fixed Interest 17.6%, dropping $5.2B from $29.6B to $24.4B in 2023 Q2. Asset
$0.13B management protocols declined the most in percentage terms, plunging
34.5% from $181M to $118M.

The Ethereum Shapella upgrade enabled withdrawals for staked Ether but
turbocharged liquid staking protocols, cementing their position in the
current DeFi landscape. Even though liquid staking protocols lost 17.4% of
their market cap from $4.2B to $3.7B, the segment has increased its
market share compared to 2023 Q1.
Asset
Management
Fixed interest protocols were the only gainer of 2023 Q2, rising by 19.6%
$0.12B from $110M to $131M, largely driven by the popularity of Pendle. The
success of Pendle also contributed to the creation of the LSDFi segment in
DeFi (see slide 27).

*Market cap includes only governance and utility tokens (excluding stablecoins and wrapped tokens CoinGecko 2023 Q2 Crypto Industry Report 26
Source: CoinGecko
LSDFi
The attention surrounding liquid staking derivatives have allowed protocols to build on top of
this new core primitive, resulting in a new DeFi segment known as ‘LSDFi’

Fixed Yield Collateralized Stablecoins

§ Fixed interest protocols such as Pendle and Flashstake § Similar to MakerDAO’s Maker Vaults, protocols such as
separate the staking yield from liquid staking tokens, Lybra Lybra, Gravita and Raft allow users to deposit their LSDs as
allowing users to hedge their yield at current rates. collateral to borrow/mint the protocol’s native stablecoin.
Pendle
§ Pendle allows users to purchase ETH at a discount and § These protocols typically maintain a collateralization ratio
receive a fixed amount of ETH upon a chosen maturity above 150%, along with other stablecoin mechanisms such
date. Gravita as stability pools and redemptions.
§ Flashstake lets users lock in their ETH or LSDs for a chosen § Lybra distributes the generated yield from the underlying
duration to receive yield tokens from a selection of various LSDs to stablecoin holders, creating a yield-bearing
Flashstake assets. stablecoin.
Raft

Restaking LSD Indices

§ EigenLayer introduced the concept of restaking, where § LSD indices offer a diversified basket of staked assets,
users could reuse their LSDs to provide security to other unshETH allowing holders to gain exposure to varying yield rates
dApps on the network and earn additional rewards in the from different LSD protocols, through a single token.
EigenLayer process.
§ The index tokens can be minted using ETH or the
§ Tenet expands on this concept, utilizing LSDs as collateral underlying LSDs. On Asymmetry Finance, the deposited
LSDx
for securing its own Layer-1 network. Holders can stake ETH will be separated across supported LSD protocols.
their existing LSDs with the network’s validators, as well as
§ These diversified asset baskets can also function as
earn fees and rewards from the network’s ecosystem of
protocols. liquidity pools, where users can swap between different
Tenet Asymmetry LSDs.
Finance

CoinGecko 2023 Q2 Crypto Industry Report 27

2023 Q2 Cross-chain Bridge Liquidity
The launch of new networks and rumors of potential airdrops drove TVL on bridges higher by
4.4%
Top 12 Bridges with Highest Liquidity (as of July 1, 2023)

Bridges 2023 Q2 2023 Q1 QoQ % Change

$11.61B
(+4.4%)
WBTC $4.8B $4.3B 12.9% Total Cross-chain Bridge Liquidity
as of July 1, 2023
JustCryptos $3.6B $3.3B 8.1%
The top 3 cross-chain bridges have remained largely unchanged in 2023
Multichain $1.3B $1.5B 10.4% Q2, with WBTC experiencing net inflows, in line with the 6.9% price
appreciation of Bitcoin. However, most of these inflows only came
Stargate $402M $369M 9.0% after June 15th, just after the SEC sued Binance and Coinbase. On the
other hand, Multichain lost 10.4% of its TVL, dropping from $1.5B to
Portal $371M $281M 31.2% $1.3B. The protocol has yet to fully recover after temporarily halting
cross-chain activities in June due to ‘unforeseen circumstances,’
hBTC $272M $253M 7.5% Wormhole’s Portal token bridge was the top gainer of 2023 Q2, its
liquidity surging by 31.2%, from $281M to $371M. The rise of Portal’s
Poly Network $272M $338M 19.4% TVL was largely contributed by the launch of the Sui mainnet in May,
where it has become the official bridge.
Synapse $179M $188M 5.1%
Stargate also saw a TVL increase of 9% from $369M to $402M,
Orbit Bridge $125M $187M 33.1% perhaps due to rumors of an impending airdrop of LayerZero’s
governance token, ZRO. Historically, providing liquidity for cross-chain
protocols has been a criteria in determining airdrop eligibility.
Celer cBridge $110M $142M 22.6%
Making its way into the top 12, Axelar fell slightly by 2.8% from $89M
Thorchain $93M $118M 21.0% to $87M. Compared to other cross-chain protocols, Axelar provides
more bridging avenues for the Cosmos ecosystem, supporting
Axelar $87M $89M 2.8% networks such as Juno, Kava and Kujira.

CoinGecko 2023 Q2 Crypto Industry Report 28

Source: DeFiLlama
Bitget Ad Slide

CoinGecko 2023 Q2 Crypto Industry Report 29

NON-FUNGIBLE TOKENS (NFTs)

CoinGecko 2023 Q2 Crypto Industry Report 30

2023 Q2 NFT Trading Volume across Top 8 Chains
NFT Trading Volume decreased by 35.0% in Q2 compared to Q1, despite Bitcoin Ordinals quickly
gaining popularity; meanwhile Solana NFT trading volumes decrease significantly

-35.0%
Top 8 Chains for NFT Trading Volume (Jan – Jun 2023)

$4.84B $3.15B
Volume
Trading Volume Decrease
in 2023 Q2
$2.5B

NFT trading volumes have decreased by

$2.08B
35.0% from $4.84B in 2023 Q1 to $3.15B in
2023 Q2.
$2.0B $0.1B
$1.69B
While Ethereum maintained its dominance
of 83.0% in the NFT market in Q2, its
$0.1B dominance did temporarily decline to
$1.5B
73.3% in May 2023, as Bitcoin Ordinals
$1.18B gained popularity and captured nearly
$1.07B 20.3% of the NFT trading volume.
$0.97B $1.00B
$1.0B $0.1B
$1.9B
$0.1B
In contrast, trading volume for Solana NFTs
$0.2B experienced a significant decline of 78.6%,
$1.5B dropping from $184.91 million in Q1 to
$39.66 million in Q2. Part of the decline can
$0.5B $1.1B
$0.9B
$0.8B
be attributable to the migration of DeGods
$0.7B and y00ts, which were significant
contributors to Solana sales volume.

$0.0B After its migration, y00ts has become one of

Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 the top 10 traded NFT collections on
Ethereum Bitcoin Immutabl eX Polygon Sola na Flow Arbi trum BNB Chain Polygon on all-time sales volume.
Source: FootPrint Analytics; Cryptoslam
*Wash trades on LooksRare , X2Y2 and Blur are excluded CoinGecko 2023 Q2 Crypto Industry Report 31
**Cardano has been excluded due to irregular trading behavior
2023 Q2 NFT Platform Trading Volumes
Blur maintains its position as the dominant NFT marketplace, controlling 71.2% of trading
volume in June 2023

-37.0%
Top 9 NFT Marketplaces (Jan – Jun 2023)

$4.59B $2.89B
Volume
NFT Marketplace Trading
$2.5B Volume Decrease in 2023 Q2

In Q2, Blur maintained its position as the

$2.02B 4.6% leading NFT marketplace, bolstered by the
$2.0B introduction of Blend, a lending platform
18.8% for NFTs, as well as the promise of BLUR
$0.92B token rewards. Their share of trading
$1.53B volume increased from 56% in 2023 Q1 to
$0.7B
65% in 2023 Q2. Meanwhile, Opensea's
$1.5B 71.2%
share continued to decline, falling from
33% in 2023 Q1 to 23% in 2023 Q2.
$0.3B $1.10B
$1.04B
$1.0B $0.87B The emergence of Bitcoin Ordinals also led
$0.1B
$0.1B $0.3B to new NFT marketplaces which support
$0.1B these NFTs, including UniSat, OKX and
$0.2B
Ordinals Wallet. On the back of this hype
$0.4B $1.1B $1.1B $0.2B
$0.5B Unisat and OKX have now become the
$0.7B fifth and sixth largest marketplace in
$0.7B June, pulling ahead of more established
$0.5B
$0.4B players CryptoPunks and LooksRare.
$0.0B
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23
Magic Eden, which previously focused on
Solana, also added support for Ordinals
Blur Opensea Ma gic Eden X2Y2 Unisa t OKX Cryptopunks Ordinals Wa llet LooksRare
in a bid to recapture market share.
Source: FootPrint Analytics, Dune (@domo)
*OpenSea volumes include Ethereum, Polygon and Solana; Magic Eden volumes include Solana, Ethereum and Bitcoin CoinGecko 2023 Q2 Crypto Industry Report 32
***Wash trades on Blur, LooksRare and X2Y2 are excluded
2023 Q2 Notable NFT Collections
It was an eventful Q2 for the NFT space: NFT Prices Experience Roller Coaster Ride, PFP
Sentiment Hits All-Time Low as bluechips seem to implode against holder expectations
Yuga Labs Under Fire Azuki Fumbles
§ Yuga Labs have been getting the heat, as the floor prices of their § Azuki has established itself as a prominent NFT collection, with its
NFT collections experienced a downward trend in Q2 2023. The community demonstrating resilience and overcoming challenges in
exact reasons behind this decline are uncertain, and it remains the past year.
unclear whether it can be attributed to Blur points farmers § The announcement of their "Follow the Rabbit" event in Las Vegas
creating artificial buyers who subsequently dumped the floor, or if generated substantial interest in the space. During this event,
the ApeCoin DAO’s extensive treasury burning occurred without Azuki unveiled a new collection, Azuki Elementals. The collection
bringing significant results. garnered immense attention and demand, resulting in a quick sell-
§ Despite floor price trending downwards, Yuga Labs have continued out within less than 10 minutes at 2 ETH.
to roll out parts of its gaming ecosystem in Q2, including the § Despite the successful sale, Azuki faced backlash as the revealed art
introduction of Otherside: Legends of Mara and HV-MTL forge. for the Azuki Elementals collection disappointed the community.
§ Additionally, they have upgraded Meebits, transforming them from Floor prices dropped below the initial mint price of 2 ETH due to
static profile pictures (PFP) into dynamic ones. perceived similarities with the original collection.

Its All Fun and Games at Memeland Milady Maker Making Its Way Up
§ Memeland has garnered significant attention in the NFT ecosystem § Milady Maker gained significant attention in the NFT space as it
as it one of the rare NFT projects that is backed by a profitable experienced a remarkable surge in value, rising from 1.1 ETH in
web2 company, 9GAG. The platform boasts three notable April to a peak of 5.5 ETH in May, before dipping back to 3.0 ETH
collections, namely "You The Real MVP," "The Potatoz," and "The at the end of Q2.
Captainz." § The surge in price was further fueled by the announcement from
§ During Q2 2023, Memeland marked several milestones. They Blur's Blend platform that Milady Maker would be one of the
successfully launched their first GM show, introduced both three featured NFT collections, alongside Azuki and Cryptopunks,
season 0 and season 1 of their raids, and revealed their supported by the platform upon its launch on May 1.
Captainz collection. § The momentum for Milady Maker continued to grow when Elon
§ However, floor price of Captainz dumped post-reveal due to Musk tweeted a picture of a Milady NFT with the caption “There Is
having similarities in the NFT’s base models, which allows No Meme, I Love You”.
customization of traits based on the NFT holder’s preference.
CoinGecko 2023 Q2 Crypto Industry Report 33
NFT Lending
The launch of Blend pushed NFT lending volumes higher by 453%, but some high-profile
collections crumbled under the massive demand for loans
Top 6 NFT Lending Platform Volume (Jan – Jun 2023) Loan Origination Volume on Blend (by Collection)

Volume Azuki

$900M BAYC
$826M 7.8% 29.4% MAYC
$800M $21M Wrapped Crypt oPunks
9.7% $1.1B DeGods
$700M Milady
12.7% Pudgy Penguins
$600M 28.5% BEANZ Official
Other s
$500M
$411M Although NFT lending platforms were already recording millions in
monthly volume in the early part of 2023, the launch of Blur Lending
$400M $786M
(Blend) , took the space by storm, increasing NFT lending volumes by
$27M
453% from $74M to $411M in May 2023.
$300M
Blend featured innovative mechanisms such as fixed interest rates and
$200M perpetual loans, but its success can also be attributed to Blur’s
$346M incentive model, which allows lenders to earn Blur points to receive
$84M $87M $84M future BLUR token drops.
$100M $74M
$38M $40M $29M Azukis and Bored Apes made up 57.9% of all loans on Blend thus far,
$0M $26M $23M $25M $24M equating to $655M in borrowed funds. Ironically despite their “blue chip”
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 status, the ETH floor prices for Azukis and Bored Apes have plunged by
36.6% and 41.9% respectively in 2023 Q2, resulting in 317 liquidations
Blend NFTFi Arcade BendDAO X2Y2 Pi ne
across both collections.
Source: Dune Analytics (@ahkek, @beetle)
CoinGecko 2023 Q2 Crypto Industry Report 34
 Track ‘em all with the new
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EXCHANGES

CoinGecko 2023 Q2 Crypto Industry Report 36

2023 Q2 Top Crypto Exchanges Trading Volume
Trading volume fell by 19.5% from 2023 Q1; majority of losses coming from spot markets, with
CEXes particularly badly hit
Top Cryptocurrency Exchanges Trading Volume (Jan - Jun 2023)

Total Trading Volume ($ Trillion) -19.5%

Trading Top Crypto Exchanges Trading
Volume $3.1T $3.2T $4.2T $3.1T $2.6T $2.8T
Volume Decrease in 2023 Q2
$4.50T

$4.00T Top crypto exchanges closed out 2023 Q2

with an -19.5% decrease in total trading
$0.92T
$3.50T volume from 2023 Q1 to 2023 Q2. Total
trading volume stands at $8.5T for the
$3.00T entire quarter. Spot DEXes declined less
$0.84T $0.56T than spot CEXes, and perpetual markets
$0.74T
$2.50T $0.46T held up better than spot markets.
$0.40T
$2.00T Derivatives trading volume still made up
the bulk of total trading volume with a
$1.50T $3.15T 77.3% share.

$2.29T $2.43T $2.28T

$2.24T $2.07T
$1.00T The ratio of CEX : DEX spot trading volume
dropped to 89.1% in Q2. This is the first
$0.50T time since 2022 Q2 in which CEX:DEX ratio
has dropped below 90%.
$0.00T
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 CEX:DEX derivatives trading volume ratio
stayed at 97.9%, with traders still
Top 10 Perpetua l CEX Top 6 Perpetua l DEX Top 10 Spot CEX Top 10 Spot DEX preferring to trade on CEX’s.

Source: CoinGecko CoinGecko 2023 Q2 Crypto Industry Report 37

2023 Q2 Top 10 Spot Centralized Exchanges (CEX) Trading Volume
Binance continued as the dominant spot CEX with 52.0% market share in June 2023, but is
progressively losing market share to its competitors
Top 10 Spot CEX Trading Volume Breakdown (Jan – Jun 2023)

Total Trading Volume ($ Trillion) -43.2%

Market Top 10 CEX Total Trading
Share $0.7T $0.8T $0.9T $0.6T $0.4T $0.5T
Volume Decrease in 2023 Q2
100%
5% 5% 5% 5% 4%
5%
90% 5% 6% 6% 4% Top-10 CEXes recorded $1.42T in spot
3% 5%
5% trading volume in 2023 Q2. Despite
80% 7% 5% 3% 5% 3% 5% showing signs of recovery in Q1, trading
5% 5% 3% 4% 5% volume has since plummeted 43.2% QoQ.
5%
6% 6%
70% 9% 6% 6%
9% 6%
7% 7% 7%
60% With pressure mounting from regulators,
10% 6% Binance has seen its dominance slide.
8%
50% However, it managed to maintain a 52%
market share in June, down from 61% in
40% March.

63% 65%
30% 61%
53% 54% 52% Huobi and Crypto.com have been edged
20%
out of the top 10, with Bybit and Bitget
taking their places.
10%
Both exchanges saw an increase in Q2
0% trading volume of $13.1B and $1.5B
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 respectively, the only exchanges in the
top 10 to see gains.
Bina nce Upbit OKX Coinbase Bybit Kucoin Bitget MEXC Gate Krake n

Source: CoinGecko CoinGecko 2023 Q2 Crypto Industry Report 38

2023 Q2 Top 10 Spot Decentralized Exchanges (DEX) Trading Volume
DEX trading volumes decreased by -28.1% in 2023 Q2, as Uniswap solidified its dominance over
the sector
Top 10 Spot DEX Trading Volume Breakdown (Jan – Jun 2023)

Total Trading Volume ($ Billion) -30.8%

Market Top 10 DEXs Total Trading
Share $60B $61B $95B $57B $47B $46B
Volume Decrease in 2023 Q2
100% 3%
2% 2%
90% 7% 3% 3% 4% Top 10 DEXs recorded a total of $155
4% 5% 7%
4% billion in spot trading volume in 2023
5% 6% 5% 13%
80% 5% 11% 9% Q2, representing a 30.8% drop QoQ.
7% 9%
6%
70% 14% 8% 10% 11%
Despite memecoin season in full swing
60% (majority launched on DEXs), volumes on
DEXs didn’t experience a noticeable uptick.
50% However, their volumes saw less decline
compared to spot CEXes.
40%
72% 70%
62% 65% 64% 65% Curve saw volumes plummet in May
30%
despite the release of its crvUSD
20% stablecoin. The stableswap ended June
with 11% of market share.
10%
Meanwhile, Trader Joe which managed to
0% break into the top 10 in 2023 Q1, has seen
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 a drop in volume. The exchange ended Q2
with just 0.3% of market share.
Uniswa p Curve Pa ncake swap Dodo Balancer Quickswap Jupit er THORChain Sushi TraderJoe

Source: CoinGecko CoinGecko 2023 Q2 Crypto Industry Report 39

2023 Q2 Spot DEX Trading Volume Breakdown by Chain
Ethereum remained the most popular chain for DEX trading with 57% market share, though its
dominance have been waning
Spot DEX Trading Volume Breakdown by Chain (Jan – Jun 2023) Ethereum captured $87.8 billion of DEX
trading volume in 2023 Q2, representing
Total Trading Volume ($ Billion)
57% amongst all chains.

Market
This is a drop of -44.7% from 2023 Q1,
Share $60B $61B $95B $57B $47B $46B where Ethereum had $158.8 billion in
trading volume and 74% market share .
100%

6% 11% 5% 6%
90% 6% 8%
6% 5% 10%
5% 13% In terms of market share, Arbitrum has
4% 7%
80% pulled ahead to be the clear #2 in terms
13%
8% 11%
17%
of DEX trading volume ahead of BSC,
70% 15% thanks to Uniswap and Trader Joe.

60% 24%

50% Having lost ground in Q1, BSC bounced

back in Q2 to capture 10% market share in
40% 79% June and keep its #3 position. However, it
71% 71% may continue to struggle as the FUD piles
30% 63% 63%
up against Binance.
47%
20%

10% Polygon consistently has the fourth highest

trading volume with ~6.0% market share.
0% As of June the Top 4 Chains control >95%
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 of volume.
Ethereum Arbi trum BSC Polygon Sola na Optimism THORChain Avalanche Fantom

Source: CoinGecko CoinGecko 2023 Q2 Crypto Industry Report 40

2023 Q2 Top 10 Centralized Perpetual Exchanges Trading Volume
While the top 10 centralized perpetual exchanges experienced a slight decline in trading
volume in 2023 Q2, the relative market share of the exchanges remained largely the same

-11.6%
Top 10 Centralized Perpetual Exchanges Trading Volume (Jan – Jun 2023)

Total Trading Volume ($ Trillion)

Top 10 Centralized Perpetual
Market
Share $2.2T $2.3T $3.2T $2.4T $2.1T $2.3T Exchanges Trading Volume
Decrease in 2023 Q2
100%

90% Between 2023 Q1 to Q2, volume across

10% 9% 8% 9% 9% top 10 centralized perpetual exchanges
10%
80% declined slightly by 11.6% from $7.7T to
12% 12% 12% 13% 12% $6.8T. However, this is still 4.5x larger than
12%
70% the Top 10 centralized spot exchanges.
14% 15% 16%
60% 17% 17% 18%
Relative share of trading volume
50% between centralized perpetual
exchanges remained largely the same
40% across the Top 10, with Binance, OKX, Bybit
and Bitget holding the Top 4 spots.
30%
56% 57% 56% 54% 53% 53%
20%
The Top 4 exchanges together control
10% >90% of the trading volume. Binance
remains the top centralized perpetual
0% exchange with >50% of the trading volume
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 alone.

Bina nce OKX Bybit Bitget KuCoin Gate Huobi BitMEX Deri bit Cr ypto.com

Source: CoinGecko CoinGecko 2023 Q2 Crypto Industry Report 41

 2023 Q2 Top 10 Centralized Perpetual Exchanges Open Interest
Besides a short-lived spike in mid-April, OI across Top 10 centralized perpetual exchanges only
saw a modest increase in Q2

+5.1%
Top 10 Centralized Perpetual Exchanges Open Interest (Jan – Jun 2023)
Open
Interest Binance: 35% KuCoin: 7%
$30B Bybit: 19% Deribit: 4% Top 10 Centralized Perpetual
Bitget: 13% BitMEX: 1% Exchanges OI Increase from
OKX; 12% Huobi: 1%
Gate: 7% Crypto.com: 1% 1 Apr 2023 to 30 Jun 2023
$25B
Other than a short-lived spike in mid-
April during Ethereum’s Shapella upgrade,
OI across Top 10 centralized perpetual
$20B exchanges only showed a modest
increase from $23.2B to $24.4B (+5.1%) in
2023 Q2.
$15B
Share of OI between exchanges also
largely stayed the same, with Binance
still leading with ~35% of OI, followed by
$10B Bybit at ~19%.

Despite the Top 4 contributing only ~80%

of OI, they managed to capture >90% of
$5B
volume. The next two exchanges KuCoin
and Gate contribute ~7% of OI each but
only captured ~2-3% of volume.
$0B
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 Centralized perpetual exchanges still
dwarf decentralized perpetual protocols
Bina nce Bybit Bitget OKX Gate KuCoin Deri bit BitMEX Huobi Cr ypto.com in terms of OI, with ~40x larger in size.

Source: CoinGecko CoinGecko 2023 Q2 Crypto Industry Report 42

2023 Q2 Decentralized Perpetual Protocols Trading Volume
While trading volume on decentralized perpetuals fell by $20.4B (-12.7%), dYdX regains its
market share, while newer protocols continue to challenge GMX

-12.7%
Top 6 Decentralized Perpetual Protocols Trading Volume (Jan – Jun 2023)

Total Trading Volume ($ Billion)

Top 6 Decentralized Perpetual
Market
Share $47B $48B $65B $52B $36B $51B Protocols Trading Volume
Decrease in 2023 Q2
100%
8%
5% 6% In 2023 Q2, the top 6 decentralized
10% 7% 7%
90% 9% 7% perpetual protocols recorded $139.7B in
7%
8% 8% trading volume, a $20.4B decrease from
13%
80% $160B in 2023 Q1. Compared to CEXes,
15% 14% 9% decentralized perpetuals represent just
15%
70% 2.1% of the $6.8 trillion in trading
17%
12% volume on CEX perpetuals.
60%

50%
As volumes on decentralized perpetuals
rebounded towards the later part of 2023
40% Q2, dYdX regained some of its market
77% share from 66% in March to 72% in June.
69% 72%
66%
30% 59% 57%
While GMX was the top contender against
20% dYdX, its position is now threatened by
newer entrants such as Kwenta and
10%
Gains Network. While GMX is still slightly
ahead with a 9% share of the market,
0%
Kwenta and Gains Network are catching
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23
up as they expand across to other
dYdX GMX Kwenta Gains Network Level Finance Pe rpetual Pr otocol altchains / rollups.

Source: Dune Analytics, GMX Analytics, Token Terminal CoinGecko 2023 Q2 Crypto Industry Report 43
2023 Q2 Decentralized Perpetual Protocols Open Interest
Open Interest on decentralized perpetual exchanges saw a minor 3.2% decrease in 2023 Q2,
while dYdX continues to increase its dominance

-3.2%
Top 6 Decentralized Perpetual Protocols Open Interest (Jan 2023 – Jun 2023)

Open
Interest
Top 6 Decentralized Perpetual
$900M
Protocols OI Decrease from
dYdX: 52% Gains: 9%
GMX: 22% Perpetual: 1.4% 1 Apr 2023 to 30 Jun 2023
$800M Kwenta: 16% Level: 0.2%

Total open interest across the top 6

$700M
decentralized perpetual protocols fell
slightly from $629M to $609M, a sign that
$600M on-chain traders are still maintaining
their positions despite BTC and ETH’s
$500M tumultuous price action in the past
quarter.

$400M
dYdX still controls the majority of open
interest between these protocols,
$300M
increasing its market share from 43%
to 52% in 2023 Q2, with $317M of open
$200M interest currently on its platform.

Together, the top 3 decentralized

$100M
perpetual platforms – dYdX, GMX, and
Kwenta – currently dominate 90% of
$0M total open interest among the 6
Ja n-23 Feb- 23 Mar-23 Apr- 23 May-23 Jun-23 Jul-23 protocols.
dYdX GMX Kwenta Gains Network Pe rpetual Pr otocol Level Finance

Source: CoinGecko, Dune Analytics, GMX Analytics, Level Finance Analytics CoinGecko 2023 Q2 Crypto Industry Report 44
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