Binance, the leading global cryptocurrency exchange, has experienced a decline in its market share in spot trading, dropping to 40% in the past month, from 62% a year ago.
As per a report by blockchain analytics firm, 0xScope, published in November 2023, Binance has witnessed a decrease in market share, with a loss of one-third of its share in the past 12 months.
“Binance’s spot trading volume has seen a significant decline in the past year, perhaps due to its listing strategy,” researchers wrote.
“Most popular coins experienced a downturn immediately after being listed on Binance.”
- South Korean exchange, Upbit, and global platform, Coinbase, rank second and third, respectively, showing their advantages in spot trading.
- OKX and MEXC complete the list of spot exchanges with more than 5% market share, with the rest of the exchanges getting 3.2% or lower.
All cryptocurrency trading volumes considered, encompassing both spot and derivatives trading:
- Binance’s market share stood at 51.2% in October 2023
- OKX at 13.4%
- Bybit at 9.6%
- Bitget at 7.0%
- MEXC Global at 6.9%
“Despite still being in the lead, Binance saw its gap shrink against main competitors, such as OKX and other second-tier exchanges,” researchers wrote, noting that its overall market share stood at 54.6% in October 2022.
Binance’s derivatives market share has been relatively stable, staying at around 50% in the past year, but it has recently decreased to about 45%, 0xScope said.
The top five centralized exchanges ranked in terms of assets value (Binance, Coinbase, Bitfinex, OKX, Kraken) account for over 80% of the total market exchange funds. Binance still dominates other exchanges in this regard, but its market share has declined by about 5% in the past year (50%->45%), 0xScope said.
“The lost share may have been taken by OKX and Coinbase, two of Binance’s main competitors, as both exchanges have seen an increase in their share of funds in the past year.”
