CoinGecko Q3 Report: Gate.io's BTC Derivatives Market Share Up 19.4% Despite Market Drops

The crypto market may have found its bottom, according to CoinGecko's Q3 2022 report. The overall crypto market cap hit $903 billion in July before ending the quarter at around $986 billion, with activity on exchanges shifting following the market decline. Meanwhile, on the exchange front, a sort of Bitcoin derivate market flippening occurred between cryptocurrency exchanges Gate.io and Binance.

The decline in trading activity impacted decentralized exchanges (DEXs) the most, with the CEX to DEX ratio increasing to 95% compared to 89% in Q2. And in terms of centralized exchange dominance, the tides began to shift in some areas.

CoinGecko noted an overall trend of some "newer, more retail-oriented" exchanges suffering significant losses as OG investors stick to older and more established exchanges. Additionally, the report highlighted how Gate.io is gaining market share at Binance's expense. Open interest (OI) on Bitcoin perpetual swaps decreased by 7.6% on Binance while growing by 19.4% on Gate.io.

The ability of the Gate.io crypto exchange to capture market share from Binance may be attributed to Gate.io's advances in global expansion, a substantial zero-fee initiative, new product partnerships, and increased transparency with users.

In Q3 alone, Gate.io secured licensing and registration in several crypto hotspots, including Hong Kong, Dubai, Malta, and Lithuania, to name a few. To complement the expansion, Gate.io integrated new payment infrastructure with Cabital to grow its already massive list of supported FIAT currencies. In addition, Gate.io removed fees on most spot and derivative trading pairs and announced a new proof-of-reserves audit to increase asset security and user trust.

Overall, Q3 saw the crypto market hit a bottom that has yet to be matched in Q4. The market decline was most apparent in the shift in trading activity on exchanges, affecting the overall activity and exchange market dominance in various areas.