Cryptocurrency exchanges Binance and Crypto.com are losing market share to smaller rivals. Binance, the world’s largest cryptocurrency exchange, saw its spot trading volume decline 13% year-on-year from 52.5% in October 2023 to its current market share of 39.5%. Reflecting the decline in spot trading, Binance’s crypto derivatives market share also declined 8.4% year-on-year from 50.9% in October 2023 to 42.5% by October 2024, according to a research report by 0XScope.
The report highlights that smaller exchanges like Bybit, Bitget, and OKX have benefited from Binance’s market share decline: “Bybit rose from 7th place last year with a market share of 3.2% to 2nd place just behind Binance with 8.51%, more than doubling its share. Meanwhile, OKX, which is now the third-largest spot exchange, rose slightly from 5.4% to 6.38%.” Centralized cryptocurrency exchange (CEX) Crypto.com experienced a similar decline, with its market share falling from 15% in October 2023 to less than 4% by February 2024. According to the report, the decline coincided with sharp increases in market share for both Binance and Upbit. Bitget’s growing market share, which grew from 8.2% to 12.7%, is due to a growing focus on educational initiatives, the development of user-centric exchanges, and recent strategic partnerships, according to Gracie Chen, CEO of Bitget. “Bitget’s partnerships with famous athletes like Lionel Messi and global sports teams like Juventus help build trust and awareness, attracting new users to the platform,” she said.
The top 22 centralized exchanges handled a combined $54 trillion in trading volume over the past year. Binance accounted for over $22.5 trillion of that volume, despite its declining share of the spot market.
Meanwhile, decentralized exchanges are becoming a growing threat to CEXs. DEX trading volumes have grown significantly over the past year, surpassing the $250 billion monthly mark in March and June for the first time since December 2021. As of October 17, DEX spot trading volume was 13.6% of CEXs, meaning that for every $1 billion in turnover on centralized exchanges, there is $136 million in trading on decentralized platforms.
