Binance’s Share of Centralized Crypto Exchange Market Decreases

A new report from 0xScope indicates that Binance’s dominance in the centralized crypto exchange market has weakened over the past year. Estimates from the blockchain analytics firm suggest that Binance’s trading volume and other indicators are “around 10% lower overall,” while competition from OKX and other “second-tier exchanges” grows stiffer.

Competition for Binance

According to the report, Binance still leads in global crypto volume, accounting for 51.2% of CEX volume share between October 17, 2022, and October 17, 2023. However, its dominance has fallen from 54.6% in October 2022 to roughly 45% since July. Meanwhile, OKX’s volume share has increased from 10.5% to 16.1% in the most recently recorded week.

Additionally, other exchanges such as Bybit, Bitget, and MEXC have seen healthy growth trends in the past year, while major exchanges like Upbit and Coinbase were excluded from the ranking due to their lack of derivatives trading volume.

In the spot market, Upbit’s share improved from 5% to 15% in a 52-week span, while Binance’s spot market dominance declined from 62% to 40%. Binance’s derivatives volume also decreased from 50% to 45%, while OKX’s volume share rose from 10% to 15%.

In June, Binance faced a lawsuit from the U.S. Securities and Exchange Commission, with allegations ranging from mismanagement of client funds to listing of multiple unregistered securities.

Analysis of On-Chain Data

Looking at blockchain data, Binance holds 45% of the crypto asset value in CEX, down from 50% the previous year. However, the exchange’s dominance decreases when looking at the deposit addresses opened at each exchange. Both Binance and Coinbase hold equal weighting at roughly 30% each, but Binance’s share returns to 40% when only counting active addresses.

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