Binance Losing Market Dominance
A recent report from 0xScope suggests that Binance’s dominance in the centralized crypto exchange market has declined by around 10% over the past year. The report indicates that Binance’s trading volume and other key indicators have weakened, while competition from second-tier exchanges like OKX has intensified.
Binance’s Second Tier Competitors
According to the report, Binance still holds the largest global crypto volume share at 51.2% between October 17, 2022, and October 17, 2023. However, its dominance has dwindled from 54.6% in October 2022 to approximately 45% since July. Meanwhile, OKX’s volume share has surged from 10.5% to 16.1%, solidifying its position as the second-largest exchange.
Other competitors like Bybit, Bitget, and MEXC have also experienced healthy growth trends. Major exchanges such as Upbit and Coinbase were excluded from the ranking due to their lack of derivatives trading volume.
Market Challenges and Lawsuit
Binance’s spot market dominance has dropped from 62% to just 40%, potentially attributed to its listing strategy leading to popular coins losing value after being listed on the platform. The exchange also faced a significant lawsuit from the U.S. Securities and Exchange Commission (SEC) in June.
An On-Chain Look
When examining blockchain data, Binance holds the highest crypto asset value among CEX at 45%, down from 50% last year. However, its dominance diminishes when analyzing deposit addresses, with Binance and Coinbase holding equal weighting at approximately 30%. Active addresses tilt the scale back towards Binance at 40%.
Hot Take: Challenges Ahead for Binance
Binance’s declining market dominance poses challenges for the exchange amidst increasing competition and legal hurdles. The shift in trading volume and market share highlights the evolving landscape of centralized crypto exchanges, signaling a need for Binance to adapt to maintain its position in the market.
By
By
By
