Review of July Data in Eight Charts: ETH Continues to Shrink, USDT, Binance Spot Market Share Reaches 70%

The Block's Research Director, Lars, reviewed the cryptocurrency market in July, noting that overall trading data was mostly revised downwards. Despite the legal issues facing Binance, spot trading volume remains high, with a market share of over 70%. In addition, the amount of Ethereum (ETH) burned each month this year has exceeded its issuance, with 3.51 million ETH burned since the implementation of EIP-1559, surpassing $10 billion, indicating a continued trend of token deflation in the token economy.

1/13 July summary 🧵

Most metrics corrected strongly.

Total adjusted on-chain volume decreased by 16.9% to $188B (BTC: -13.1%, ETH -21.9%): pic.twitter.com/TqByG9uy1i

— Lars (@lars0x) August 1, 2023

Cryptocurrency Market On-Chain Trading Volume

Decrease in BTC and ETH On-Chain Trading Volume

Most on-chain data shows a significant decrease, with Bitcoin and Ethereum's total on-chain trading volume in July around $188 billion, a decline of -16.9%.

• BTC: -13.1%

• ETH: -21.9%

Stablecoin On-Chain Trading Volume Decrease

• Stablecoin on-chain trading volume in July was $487.8 billion, a decrease of -12.3%

• Circulating supply dropped to $117.7 billion, -1%

• USDT market share increased to 71.5%

• USDC market share decreased to 20.9%

Ethereum Data

ETH Continues Deflationary Trend This Year

• 82,846 ETH burned in July, approximately $15.67 million

• ETH has continued to burn more than it issues since January

• After implementing EIP-1559, 3.51 million ETH burned, around $10.04 billion

20% Drop in Ethereum NFT Trading Volume

• Ethereum's NFT trading volume in July was $425 million, a decrease of 20.4%

• Blur's trading volume has surpassed OpenSea for the sixth consecutive month

Blur's high market share is mainly due to incentive measures for airdropped tokens: NFT collector Pranksy criticizes Blur for "excessive false trading"! Trading volume-related data cannot be referenced

Centralized Exchange CEX

Decrease in Spot Trading Volume

• CEX trading volume in July was $269.1 billion

• Trading volume hits a new low since October 2020

Binance Still Holds 70% Spot Market Share

• Binance: 70.6%

• Coinbase: 10.8%

• Kraken: 5%

• BTSE: 4.6%

• LMAX Digital: 3%

Despite legal issues, Binance's business volume remains high: U.S. media Semafor reveals that the Department of Justice is considering suing Binance for fraud, but fears a repeat of the FTX run on the bank

Cryptocurrency Derivatives Market

Nearly 30% Drop in BTC and ETH Futures Trading Volume

• BTC open interest fell by -8.4%, ETH remained stable

• BTC futures trading volume was $637.2 billion, down -27.1%

• BTC futures trading volume was $312.6 billion, down -25.2%

CME: Different Stories for BTC and ETH

• BTC options open interest fell by -38.6%

• ETH options open interest -25%

• BTC monthly options trading volume was $18.9 billion, down -16%

• ETH monthly options trading volume was $10.7 billion, up 8.1%