Originally published on: October 24, 2024
In recent updates, Binance has seen a decrease in market share as smaller cryptocurrency exchanges and decentralized exchanges (DEXs) rise in popularity.
According to a recent report by 0XScope shared with Cointelegraph, Binance, the largest crypto exchange globally, experienced a 13% decline in spot trading volume year-over-year, dropping from 52.5% in October 2023 to 39.5% in the current market share. Additionally, Binance’s crypto derivatives market share decreased by 8.4% during the same period.
Meanwhile, smaller exchanges like Bybit, Bitget, and OKX have taken advantage of Binance’s decline in market share. Bitget, for example, increased its market share from 7% to 10.28%, attributed to its focus on educational initiatives, user-centric development, and strategic partnerships.
Despite the decrease in market share, Binance remains the top centralized cryptocurrency exchange (CEX) with a trading volume exceeding $14.8 billion and an average of 11.8 million weekly visits according to CoinMarketCap.
The rise of decentralized exchanges poses a significant challenge to CEXs. DEX trading volumes have surpassed the $250 billion mark monthly, highlighting the growing preference for decentralized platforms. As of October 17, DEX spot trading volume in relation to CEXs was at 13.6%.
Despite facing legal challenges in the past, including a lawsuit filed by the SEC for alleged securities violations, Binance has shown signs of recovery. The exchange settled to pay a substantial fine, but no evidence of user fund misappropriation was found.
With the shifting landscape of cryptocurrency exchanges, Binance and other major players will need to adapt to the growing competition and changing preferences of traders and investors. Stay updated on the latest developments in the crypto world by subscribing to the Finance Redefined newsletter for insightful analysis and opportunities in the finance sector.
