Centralized exchanges (CEXs) have seen a significant decline in trading volume, with reports indicating a 46% drop throughout 2022. Despite this trend, Binance emerged as the clear leader, with a 66.7% market share in December, up from 48.7% at the start of the year.
While spot trading volume on Binance dropped 45.3% during 2022, the exchange maintained and even increased its market dominance. In fact, out of the 11 exchanges tracked in the report, Binance and Bybit were the only ones that saw their market shares consistently rise in each quarter of the year.
Coming in second was Coinbase with an 8.2% market share, down from 10.1% at the start of the year, followed by OKX with 5.9%, a decrease from its 10.7% share at the beginning of the year. The decline in market share for Coinbase and OKX may have been due to increased competition, changes in trading volume, and shifts in market trends.
According to the report, the decline in volatility and liquidity in the cryptocurrency market is a clear sign of a lack of participation or doubts due to the recent developments in the industry.
However, the crypto community was not surprised by Binance’s emergence as the leader, as a report in October showed that Binance dominated the CEX market with a staggering 75% of the total trade volume.
According to CryptoCompare, Binance’s total volume for November was an impressive $642.7 billion, highlighting the exchange’s continued success and popularity among traders. Binance has built a sterling reputation for offering a wide range of trading options and a user-friendly platform, attracting a large and loyal user base.
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