Binance Spot Trading Market Share Declines from 62% to 40% over a Year
Summary:
Binance, the leading crypto exchange, has seen its spot trading market share plummet from 62% to 40% over the past year, according to a report by 0xScope. The most significant gain was observed by South Korean crypto exchange Upbit, which surged from 5% to 15.3% within the same period. Other rising exchanges include Bybit, Bitget, and MEXC, collectively holding 42.3% of the market. Binance's overall market dominance, including spot and derivatives, decreased from 54.6% in 2022 to 51.2% in October 2023.
The dominant position of cryptocurrency exchange Binance has taken a hit, with its spot trading market share falling to 40% by the end of 2023, a sizable drop from 62% seen a year prior. A report released on November 6 by 0xScope, a blockchain data analysis company, revealed that Binance has lost a third of its market influence within a year. The report suggested the notable decrease in the Binance spot trading volume could be the result of its coin listing policy, as most coins experience immediate downturns upon being listed on the platform. Meanwhile, Upbit, the Korean crypto exchange, recorded the most substantial gain, with its spot market share surging from 5% to 15.3% within the same timeframe.
When considering the entire cryptocurrency trading volume, inclusive of spot and derivatives, Binance's market share was reported at 51.2% in October 2023. It is trailed by OKX at 13.4%, Bybit at 9.6%, Bitget at 7.0%, and MEXC Global at 6.9%. Despite maintaining its leading position, Binance's competitive edge has undeniably diminished against rivals like OKX and other up-and-coming exchanges. Researchers noted that Binance's aggregate market share was at 54.6% in October 2022.
Meanwhile, the likes of Bybit, Bitget, and MEXC have emerged as second-tier exchanges, trailing behind Binance and OKX with a cumulative market share of 42.3%. In contrast, Huobi, which has been losing ground, now forms the third tier along with Kucoin, Gate, and other exchanges, as per the analysis from the research team.
Parallelly, it was identified that factors like website traffic and social media followers don't significantly influence an exchange's market performance. However, the data revealed a 5% decrease in Binance's share of Twitter followers over the past year, despite an increase in its base value. On the other hand, OKX saw a whopping 200% jump in its raw follower count.
Published At
11/6/2023 5:00:00 PM
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