Binance, one of the world’s leading cryptocurrency exchanges, has experienced a notable decline in its market share for spot trading, dropping from 62% to 40% over the past year, according to a report by blockchain analytics firm 0xScope released on November 6.
This one-third reduction in market share is attributed to Binance’s listing strategy, which has led to many popular coins experiencing a downturn immediately after being listed on the exchange. While Binance’s spot trading volume has declined, Korean cryptocurrency exchange Upbit has seen a significant increase, with its spot market share growing from 5% to 15.3% during the same period.
When considering the total cryptocurrency trading volumes, including both spot and derivatives, Binance’s market share stood at 51.2% in October 2023, followed by OKX at 13.4%, Bybit at 9.6%, Bitget at 7.0%, and MEXC Global at 6.9%. The report highlights that Binance’s lead has narrowed compared to its competitors, particularly OKX. In October 2022, Binance’s overall market share was 54.6%.
The landscape of cryptocurrency exchanges has evolved, with second-tier exchanges like Bybit, Bitget, and MEXC gradually gaining ground and now accounting for a combined market share of 42.3%. Meanwhile, Huobi, once a prominent exchange, has fallen behind and now forms the third tier alongside Kucoin, Gate, and others.
The report also examined social media engagement, revealing that Binance’s share of Twitter followers decreased by 5% in the past year, despite an overall increase in its follower base. In contrast, OKX expanded its Twitter follower count by more than 200%.
Binance’s diminishing market share in spot trading underscores the competitive nature of the cryptocurrency exchange sector and the evolving dynamics as users seek alternatives and diversified trading options. The cryptocurrency exchange market continues to undergo shifts in response to changing market conditions, listing strategies, and user preferences.
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