As a seasoned crypto investor with over a decade of experience in this volatile yet exciting market, I must say that the recent developments in the exchange landscape have caught my attention. The rise of smaller players like Bybit, Bitget, and OKX, and the declining market share of giants such as Binance and Crypto.com, has certainly shaken up the game.
Smaller competitors are taking over a larger portion of the market once held by well-known platforms like Binance and Crypto.com, due to an increase in popularity for decentralized cryptocurrency trading platforms.
In a year-on-year comparison, Binance, the leading global cryptocurrency trading platform, experienced a decrease of more than 13% in their spot trading volume. This decrease took their market share down from approximately 52.5% in October 2023 to its current position of around 39.54%.
In line with a decrease in its spot trading, Binance’s dominance in the crypto derivatives market also decreased by 8.4% year-on-year. This decline was observed as the market share fell from 50.9% in October 2023 to 42.5% by October 2024, according to a report from 0XScope that was made available to CryptoMoon.
The report underscores the fact that platforms like Bybit, Bitget, and OKX have seized opportunities as Binance’s market share has diminished.
“[Bybit] surged from the No. 7 spot last year with a 3.2% market share to just behind Binance at No. 2 with 8.51%, more than doubling its share. Meanwhile, OKX, now the third-biggest spot exchange, slightly climbed from 5.4% to 6.38%.”
Bitget’s increasing market dominance, which escalated from 8.2% to 12.7%, is attributed to a heightened emphasis on educational programs, user-friendly exchange advancements, and strategic collaborations, as reported by Gracy Chen, the CEO of Bitget, in an interview with CryptoMoon.
“Bitget’s collaboration with high-profile athletes like Lionel Messi and global sports teams such as Juventus helps build trust and recognition, driving new users to the platform.”
One of the major cryptocurrency exchanges, Binance, experienced a setback, joining others in losing market position. Similarly, Centralized Cryptocurrency Exchange (CEX) Crypto.com faced a comparable downturn. Its market share dropped from 15% in October 2023 to less than 4% by February 2024. The report suggests that this decline occurred concurrently with growth spurts for both Binance and Upbit.
DEX trading on the rise
Decentralized exchanges (DEXs) are becoming a growing threat to CEXs.
During the last twelve months, the volume of transactions on Decentralized Exchanges (DEX) has expanded notably, exceeding the $250 billion threshold in both March and June this year, which is a milestone not seen since December 2021.
On October 17th, it was found that 13.6% of the total spot trading volume was being handled on Decentralized Exchanges (DEXs), which means approximately $136 million in trades were happening on these platforms for every billion dollars traded on Centralized Exchanges (CEXs).
CEX trading volumes still dominant
For the last twelve months, the top 22 centralized trading platforms collectively handled a staggering $54 trillion in trading activity.
Despite a decrease in its spot market share, Binance contributed significantly to the total trading volume, amounting to more than $22.5 trillion.
Despite the stiff competition from Binance‘s rivals, they continue to encounter significant challenges, largely stemming from the escalating trade volumes in Decentralized Exchange (DEX) markets. As per the recent findings:
“Binance’s market share has been trending upwards in recent weeks, and if this momentum continues, rival exchanges such as OKX, Bybit, and Bitget will have a more difficult time capturing more market share.”
2024 saw Binance’s market dominance climb steadily, maintaining a position above 40% on its spot market for much of the year. On the other hand, its derivatives market share varied between 45% and 50%.
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2024-10-22 12:50