Title: The 2023 CEX Market Report by 0xScope: A Comprehensive Overview

Overview of the Changing Landscapes in CEX Market

The 2023 CEX Market Report by 0xScope, released on November 6, 2023, offers a detailed look at the evolving dynamics within the centralized exchanges (CEXs) over the past year. The report highlights the shifting landscape and the emergence of second-tier exchanges such as OKX and Upbit, which are challenging Binance‘s previously uncontested dominance.

Changing Market Dynamics

Binance, the market leader, has seen a decline in its grip on the market, experiencing a reduction in trading volume and other key indicators by approximately 10%. While still maintaining over half of the market share at 51.2%, there has been a noticeable decrease from the 54.6% share it held in October 2022.

Intensified Spot Trading Competition

Competition in spot trading has intensified, leading to Binance‘s share dropping from 62% to 52.5% over the year. The rise of Upbit in the market has been substantial, with its market share increasing from 5% to 15.3%, largely driven by the vibrant South Korean market.

Rise of Second-Tier Exchanges

Although Binance still leads in derivatives with a share of around 45%, down from 50.9%, it is facing increased competition. OKX, in particular, has experienced a significant increase in its share of derivatives, climbing from 10% to 15%, signaling a broader shift in the CEX ecosystem.

Market Trust Redistribution

Analyses of on-chain data and asset values reveal that established exchanges like Binance, Coinbase, and Bitfinex collectively hold over 80% of market exchange funds. However, a slight decline in Binance‘s asset value share indicates a redistribution of market trust towards competitors like OKX and Coinbase.

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Challenges in New Customer Acquisition

Binance and Coinbase collectively account for over 60% of the CEX market’s deposit addresses, but the monthly increase in new deposit addresses has been slowing down, highlighting a challenge in new customer acquisition.

Web and Social Media Data Analysis

An examination of web and social media data shows that Binance has experienced a dip in website traffic and Twitter follower share, despite a net increase in followers. Conversely, OKX has nearly tripled its Twitter followers, indicating a successful growth in market visibility.

Final Thoughts from the Report

The report emphasizes the lack of a direct correlation between web presence and exchange performance. It also acknowledges potential discrepancies due to the opaqueness in exchanges’ on-chain addresses. This report serves as a critical barometer for understanding CEX dynamics, revealing that while Binance remains at the forefront, it is facing a significant challenge from emerging players reshaping the market share equation.



### News source: blockchain.news

By Team