CoinJin.com reported:
In terms of trading volume, the largest centralized exchange (CEX), Binance, has continued to decline in market share for the second consecutive year.
Currently, the exchange accounts for 39.54% of the total spot trading market volume, lower than last year’s 52.5%, representing a decrease of 13% in just 12 months.
However, according to a recent study, Binance’s native token BNB has performed the best among exchange tokens.
Report by 0xScope.
As Bitcoin rises, Binance faces challenges
In the past year, the total spot trading volume of 22 exchanges reached $14.6 trillion. Binance is still in the lead with a trading volume of $5.78 trillion, but competition is heating up.
Bybit has taken advantage of Binance’s decline, jumping from the seventh position last year to the second position, with a market share in the spot trading market rising from only 3.2% to 8.51%. OKX now ranks third with a market share of 6.38%, slightly higher than last year’s 5.4%.
Binance has been on a downward trend for the past two years. In October 2022, Binance held approximately 62% of the market share. By November 2023, its market share plummeted to 30%, and then recovered to over 40% for most of 2024.
While Bybit has achieved remarkable gains, other exchanges have not performed well. Upbit, which ranked second last year with a market share of 6.8%, has now fallen to fourth place with a market share of 5.77%.
Coinbase has also dropped from the third position to the fifth position, decreasing from 5.8% to 5.68%. On the other hand, OKX managed to climb to the third position, with its market share increasing from 5.4% to 6.38%.
Meanwhile, the weekly spot trading trends tell a similar story. Binance’s lead in spot trading narrowed to 34% in early 2024, and then rebounded to over 45% in the fourth quarter.
In contrast, Upbit’s market share hit a low point of 2%-4% at the end of 2023, but slowly recovered to over 5% in the second quarter of 2024 and reached 10% in September.
However, Bybit lost momentum after reaching its peak in January, with its market share dropping from 10%-13% to 5.2% in September.
OKX and Bybit shine in derivatives trading
The situation for Binance in the derivatives market is roughly the same. Among the 22 major exchanges, 11 offer cryptocurrency derivatives trading, with a total trading volume of $39.38 trillion, nearly three times that of spot trading.
OKX and Bybit have consolidated their positions as the second and third largest derivatives exchanges, respectively. OKX’s market share has increased from 15.5% to 19.83%, while Bybit’s market share has grown from 11.3% to 13.98%.
Fourth-placed Bitget has also made progress, with its market share increasing from 8.2% to 12.73%. MEXCGlobal, ranking in the top five, saw its market share drop from 7.3% to only 4.27%.
In the past 12 months, the overall market capacity of centralized exchanges has reached $54 trillion, with Binance accounting for $22.5 trillion.
Decentralized exchanges making progress
While centralized exchanges have been struggling, decentralized exchanges (DEX) have quietly made progress. The DEX market has expanded significantly, processing over $250 billion in trades in March 2024, a milestone not seen since December 2022.
This trend continued in June, with DEX surpassing the $250 billion mark again. As of October 17, DEX accounted for 13.6% of the total spot trading volume, higher than May 2023’s 14.18%.
For every $1 billion traded on CEX, there is $136 million traded on DEX. These developments are driven by new technologies and features in the DeFi space, such as liquidity staking, cross-chain solutions, and tokenization of real-world assets.
The rise of Ethereum and layer 2 solutions on other networks has also contributed to the growth in DEX trading volume.
Meanwhile, BNB remains one of the top five cryptocurrencies by market capitalization, used not only on the Binance exchange but also on the BNB chain, powering thousands of projects.
BNB reached a peak weekly trading volume of $41.32 billion in the week Bitcoin hit a new all-time high in March 2024. On average, BNB’s weekly trading volume is around $8.57 billion, far exceeding other exchange tokens.
In terms of price growth, BNB is leading once again. After starting around $200 in October 2023, BNB reached a high of $710 in June, setting a new record. Since March, the price has fluctuated between $500 and $600.
Binances Market Share Continues to Decline for the Second Consecutive Year as BNB Remains the Topperforming Exchange Token
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