Binance’s share in the volume of trading on the spot market fell by 13% over the year

What’s new? Leading centralized crypto exchanges (CEXs), such as Binance, are losing market share to smaller competitors, while decentralized exchanges (DEXs) are seeing trading volumes grow, according to 0XScope analysts. Thus, Binance’s share of the spot market fell by 13% (from 52,5% to 39,5%) over the year, and on the derivatives market — by 8,4% (from 50,9% to 42,5%).

Material by Cointelegraph

What else is known? Its main competitors, including Bybit, Bitget, and OKX, have benefited from Binance’s declining market share. For example, Bybit’s share nearly tripled over the year (from 3,2% to 8,51%), moving the exchange from seventh to second place in terms of spot market trading volume. OKX, which is now the third-largest spot exchange, grew its share from 5,4% to 6,38%.

In terms of the derivatives market, OKX ranks second with a 19,83% share, followed by Bybit (13,98%) and Bitget (12,73%). The latter’s share has skyrocketed from 8,2%, which CEO Gracy Chen attributed to recent strategic partnerships with famous athletes and sports teams such as Lionel Messi and Juventus. This has helped Bitget build trust and attract new users to the platform.

Crypto.com, like Binance, has seen its trading volume decline, with its spot market share falling from 15% in October 2023 to below 4% by February 2024. Notably, the decline coincided with a sharp increase in market share for both Binance and Upbit.

Decentralized exchanges are becoming an increasing threat to CEXs, 0XScope experts write. Over the past year, trading volumes on DEXs have grown significantly, and in March of this year, the total monthly trading volume on them exceeded the $250 billion mark for the first time since December 2021. It was crossed again in June.

As of October 17, the DEX spot trading volume against the CEX was 13,6%. Thus, for every $1 billion traded on centralized exchanges, $136 million was traded on decentralized platforms.

Nevertheless, trading volumes on CEXs continue to dominate. Over the past year, the 22 largest centralized exchanges saw $54 trillion in trading volume. Of that, Binance accounted for more than $22,5 trillion, despite its declining spot market share.

Binance’s main competitors are struggling, partly due to rising trading volumes on DEXs. The report states:

“Binance’s market share has been trending upwards in recent weeks, and if this momentum continues, rival exchanges such as OKX, Bybit, and Bitget will have a more difficult time capturing more market share.”

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According to blockchain analyst Colin Wu, in September, the volume of spot trading on the leading CEXs fell by 22% over the month, with only Crypto.com (+34%), Bitfinex (+6%), and Upbit (+2%) showing positive dynamics. On the other exchanges, the decline amounted from 15% to 66%.

As for derivatives, aggregate volumes also fell by 20%, with only Crypto.com (+37%) and MEXC (+21%) seeing growth. The rest of the platforms experienced a 12-45% drop in the index.