- Binance’s market volume share has seen a significant drop from 55% to 45% within a year, facing stiff competition from other exchanges.
- Upbit is claiming a larger stake in spot market trading, holding over 10%, while OKX is marking its territory in derivatives trading, increasing its share from 10% to 15%.
The Tides of Trade: Binance’s Battle to Stay on Top
As the crypto exchange battleground becomes increasingly competitive, the titan of trade, Binance, is feeling the pressure. A recent study from 0xScope reveals a noticeable contraction in Binance’s market volume share. It underscores a shift in the crypto cosmos, with Binance’s supremacy dipping from a commanding 55% to a more vulnerable 45% from October 2022 to July 2023. This decline spans across both the spot and derivatives markets.
Spotlight on Spot Trading
Spot trading—a real-time purchase or sale of crypto—has always been Binance’s forté. Yet, even here, the colossus has seen its influence wane. From controlling 62% of the spot market, Binance now commands only 40%. Rising to the occasion is Upbit, which has now carved out over 10% of this market sector for itself, showcasing the dynamic and ever-changing nature of crypto trading platforms.
Derivatives: A New Frontier
In the realm of derivatives—contracts based on the future price of digital assets—Binance still wears the crown with approximately half the market’s share. However, the throne is beginning to shake as a cohort of exchanges, including OKX, Bybit, Bitget, and MEXC, begin to encroach, jointly seizing over 40% of the derivatives trading volume. OKX, in particular, stands out as the heir apparent in derivatives, having bolstered its share to a substantial 15%.
While Binance’s hold over the total value of crypto assets held by exchanges has slipped from 50% to 45%, its competitors, particularly OKX and Coinbase, have seized this opportunity to augment their holdings.
A Sign of Changing Times
The report by 0xScope points to Binance’s decreasing website traffic and a reduction in social media clout as indicators of its lessening dominance. With a more equitable distribution of market volume and value, the crypto exchange landscape is evolving into a more competitive and diversified arena, posing new challenges and opportunities for market players.