Crypto News – Spot Trading Volume Drops: Binance Loses Ground to Smaller Exchanges
Crypto News – Cryptocurrency exchanges Binance and Crypto.com are experiencing a notable loss in market share as decentralized exchanges (DEXs) gain momentum. Binance, the world’s largest crypto exchange, reported a 13% year-over-year decline in spot trading volume, dropping from 52.5% in October 2023 to 39.5% currently. This decline reflects broader trends within the crypto trading landscape.
Binance’s Derivatives Market Struggles
In conjunction with its spot trading challenges, Binance’s crypto derivatives market share also diminished, falling 8.4% year-over-year from 50.9% in October 2023 to 42.5% by October 2024, as highlighted in a recent 0XScope research report shared with Cointelegraph. This report emphasizes that smaller exchanges, such as Bybit, Bitget, and OKX, have effectively capitalized on Binance’s shrinking market share.
- Bybit has notably surged from the seventh position last year, with a 3.2% market share, to second place with 8.51%, more than doubling its share.
- OKX, now the third-largest spot exchange, increased slightly from 5.4% to 6.38%.
Bitget’s Strategic Growth
Bitget’s growing market share, which rose from 8.2% to 12.7%, can be attributed to a strong focus on educational initiatives, user-centric exchange development, and recent strategic partnerships. Gracy Chen, CEO of Bitget, explained to Cointelegraph that collaborations with high-profile athletes like Lionel Messi and global sports teams such as Juventus are helping to build trust and recognition, attracting new users to the platform.
Crypto.com Faces Similar Challenges
Crypto.com, another centralized cryptocurrency exchange, has seen a parallel decline, with its market share plummeting from 15% in October 2023 to below 4% by February 2024. This decline coincided with surges in market share for competitors like Binance and Upbit.
The Rise of Decentralized Exchanges
The rise of DEXs poses a growing threat to centralized exchanges (CEXs). Over the past year, DEX trading volumes have experienced significant growth, surpassing the $250 billion monthly mark in both March and June for the first time since December 2021. As of October 17, DEX spot trading volume accounted for 13.6% of CEXs, meaning for every $1 billion traded on centralized exchanges, $136 million was transacted on decentralized platforms.
CEX Trading Volumes Still Dominant
Despite the rise of DEXs, the 22 largest centralized exchanges have processed a cumulative $54 trillion in trading volume over the past year. Binance alone accounted for over $22.5 trillion of that total, even amid its falling spot market share. However, its top competitors face an uphill battle, partly due to increasing DEX trading volumes.
Recent Trends and Future Outlook
Interestingly, Binance’s market share has shown signs of trending upwards in recent weeks. If this momentum continues, rival exchanges like OKX, Bybit, and Bitget may find it increasingly difficult to capture additional market share. The report notes that Binance’s spot market share has remained above 40% for most of the year, while its derivatives market share has fluctuated between 45% and 50%.
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