Last updated on December 6th, 2024 at 12:59 am
A new report has indicated that Binance and Crypto.com are losing market share to smaller competitors as decentralized exchanges (DEXs) gain popularity.
Binance, the largest cryptocurrency exchange globally, saw a 13% drop in spot trading volume over the past year, declining from 52.5% in October 2023 to 39.5% in October 2024. This decrease in spot trading is mirrored by an 8.4% reduction in Binance’s crypto derivatives market share, which fell from 50.9% to 42.5% during the same period, according to a report by 0XScope.
The report highlighted that smaller exchanges like Bybit, Bitget, and OKX have benefited from Binance’s shrinking market presence. For example, Bybit surged from seventh place with a 3.2% market share last year to second place with 8.51%, more than doubling its share. OKX, now the third-largest spot exchange, experienced a slight increase in market share from 5.4% to 6.38%.
Similarly, Crypto.com experienced a decline in market share, dropping from 15% in October 2023 to below 4% by February 2024, which coincided with market share gains for both Binance and Upbit.
Despite these challenges, Binance’s market share has shown signs of recovery in recent weeks. The report noted that if this trend continues, exchanges like OKX, Bybit, and Bitget may struggle to capture additional market share, as Binance’s spot market share has remained above 40% for most of the year, while its derivatives market share fluctuated between 45% and 50%.
The findings align with a recent analysis by Bybit and Treehouse, which reported a significant rise in cryptocurrency market value from October 2023 to March 2024. During this period, market capitalization increased from just over $1 trillion to $2.6 trillion, spurred by rising investor confidence and increased fund inflows. Leading assets like Bitcoin (BTC) and Ethereum (ETH) outperformed traditional markets, with BTC rising 155.35% and ETH up 105.71%, while traditional financial markets showed mixed performance.
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