In
a recent report by blockchain analytics firm 0xScope, a striking development in
the cryptocurrency exchange landscape has been unveiled. The report, released
on November 6, highlights a significant decline in Binance’s market share over
the past year, attributing it to a possible shift in the exchange’s listing
strategy.
Binance
has witnessed a notable decrease in its spot trading market share, which has
dropped to 40% in late 2023 from 62% just a year ago. It means the firm has
lost one-third of its market share in the past 12 months. The report also underscores
the rise of the Korean crypto exchange Upbit, which has made gains during the
same period. Upbit’s spot market share surged from 5% to 15.3%.
Spot and Derivatives Trading Volume, Source: OxScope
When
considering all crypto trading volumes, encompassing both spot and derivatives,
Binance’s market share stood at 51.2% in October 2023. This was followed by OKX
at 13.4%, Bybit at 9.6%, Bitget at 7.0%, and MEXC Global at 6.9%. Notably,
Binance’s market share has been steadily shrinking, as it stood at 54.6% in
October 2022.
Shifting Tiers in the Crypto
Exchange
During
this period, exchanges like Bybit,
Bitget, and MEXC have risen to become “second-tier” exchanges,
trailing Binance and OKX,
collectively holding a significant market share of 42.3%. Other exchanges like
Huobi, Kucoin, and Gate find themselves in the third tier, having gradually
fallen behind in the fiercely competitive market.
While
website traffic and social media followers are not seen as definitive
indicators of an exchange’s market performance, the 0xScope report did note
some interesting trends. Despite an overall increase in its base value, Binance experienced a
5% decrease in its share of X (formerly Twitter) followers in the past year. In
contrast, OKX managed to grow its raw follower count by over 200%.
The
coming months will be crucial for Binance and other major players in the cryptocurrency
exchange arena as they adapt to these changing market dynamics and strive
to maintain their positions in the industry.
In
a recent report by blockchain analytics firm 0xScope, a striking development in
the cryptocurrency exchange landscape has been unveiled. The report, released
on November 6, highlights a significant decline in Binance’s market share over
the past year, attributing it to a possible shift in the exchange’s listing
strategy.
Binance
has witnessed a notable decrease in its spot trading market share, which…
