Due to the key asset’s low volatility, traders are quitting exchanges in the midst of another bad market episode. According to Kaiko statistics, trading in fiat pairings is also adversely impacted.
Binance (BNB) lost 95% of its fiat trading volume
The largest cryptocurrency exchange in the world, Binance (BNB), has seen a 95% decline in its trading volume in fiat pairings since a record high was set in May 2021. According to data provided by the analytical platform Kaiko, this indicator decreased by 60% as compared to early Q1, 2023.
All crypto-to-fiat pairings with the euro (EUR), British pound (GBP), Turkish lira (TRY), Brazilian real (BRL), Australian dollar (AUD), and other significant global fiat currencies were covered by the study. The exchange imposed several limits in 2023, although the most severe decrease really occurred in 2022.
On all platforms, cryptocurrency trading volume is decreasing. As previously reported by U.Today, trading activity on Ethereum-based NFT platforms in August 2023 was 90% lower than it had been at its peak in 2021.
Binance (BNB), a market leader, is most negatively impacted by the poor price performance and lower volatility. Only in Q2 of 2023 did its total trade volume decline by 70%.
Binance’s (BNB) dominance remains strong despite regulatory attacks
The volatility of Bitcoin (BTC) reached a record low in August 2023. The S&P 500, NASDAQ, and crude oil were all more volatile than the biggest cryptocurrency.
Despite this challenging environment, Binance (BNB) continues to dominate the global exchange market. Thor Hartvigsen, a DeFi researcher, pointed out that Binance (BNB) still manages a 20x greater trading volume than all other decentralised exchanges combined.
Additionally, according to statistics from CoinMarketCap, Binance (BNB) outperforms Coinbase, its closest rival, in terms of spot trade volume by a margin of 300–400%. In terms of volume of futures trading, Binance (BNB) outpaces OKX by 170%.