5 months ago
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Binance’s dominance faces a threat as its market share falls below 50%, while major rivals gain ground, according to a recent report from crypto research platform TokenInsight.
The report shows that Binance’s market share dropped from around 54% to approximately 49% between January 1, 2023, and December 17, 2023, marking a 5% decline. Despite this decrease, Binance remains the exchange with the largest market share.
Source: tokeninsight.comIn contrast to Binance, OKX, Bybit, Gate, Crypto.com, and HTX saw a share growth. Notably, OKX’s market share jumped from over 11% to 16%, while Bybit rose from 10% to 12%. Other exchanges like Bitget, Kucoin, Kraken, and Coinbase witnessed their market shares decrease.
In terms of trading volumes, Binance continues to dominate both spot and derivatives trading. Binance firmly leads the market with over 53% share in derivatives trading and over 55% in spot trading, outperforming its closest rivals, OKX, Bybit, and Upbit, in these areas.
A remarkable trend is the preference for derivatives trading over spot trading on most exchanges. Bybit, Bitget, and OKX each have nearly 91% of their volume in derivatives. In contrast, most of Kraken’s trading volume comes from spot trading.
Source: tokeninsight.comBinance, despite having a higher volume in derivatives trading, also demonstrates a significant presence in spot trading relative to its competitors. In contrast, Coinbase’s derivatives exchange, which primarily offers nano Bitcoin and Ethereum future contracts, has not made a substantial impact when compared to other exchanges’ performance.
In terms of derivatives trading, Binance started and ended the year as the leader but saw its market share drop below 51%. OKX, on the other hand, grew from 15% to over 19%. Bybit also showed growth, though it fluctuated throughout the year. Gate and KuCoin remained stable with 2-3% shares.
The report also highlights the decentralized exchanges (DEX) and centralized exchanges (CEX) dynamic. DEX’s share of the total trading volume remained stable at approximately 3%, peaking in Q1 and hitting the lowest in Q3.
Source: tokeninsight.comNotably, the preference for CEX over DEX held steady throughout the year despite significant events like the resignation of Binance CEO Changpeng Zhao. The relative stability of the DEX market share indicates that trader behavior didn’t significantly shift towards decentralized exchanges in 2023.
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