In June 2022, spot trading volumes across all centralized crypto exchanges fell 27.5% to $1.41tn, the lowest figure recorded since December 2020. Binance’s market share rose to 49.7% in June from 45% in January, according to CryptoCompare. FTX boosted its market share to 8.95% in June from 6% in January, making it the second-largest spot market. Coinbase has seen its share of the spot-trading market fall to 7.39% in June from 10.8% in January. OKX, BeQuant, and Gemini also saw their market share slip.
Coinbase, the largest U.S. exchange, has suffered particularly in the first six months of 2022. Its trading volume fell 52% in June to about $37 billion from $77 billion in November, TradeBlock estimated. Spot-trading volume for the nine largest cryptocurrencies was down 35% from the November highs, research firm TradeBlock reported.
However, exchanges could be the next sector to see the kind of pain that has cut down lenders and hedge funds. In 2022, 21 exchanges closed down, according to CoinJournal. The crypto research firm expects more failures.
The Asian crypto exchanges Vauld and Zipmex filed for bankruptcy protection recently and have been seeking partners and fresh capital. Both exchanges filed for protection from creditors in Singapore. FTX.US President Brett Harrison said the company is seeking deals. Binance also plans to make some acquisitions, said Patrick Hillmann, the company’s chief communications officer.
