Binance’s Market Share in Spot Trading Drops to 40% in 2023: Report
Binance, the popular cryptocurrency exchange, has experienced a significant decline in its market share in spot trading, dropping from 62% to 40% in late 2023, according to a report by blockchain analytics firm 0xScope. The report suggests that Binance’s listing strategy may have contributed to this decline, as most popular coins experienced a downturn immediately after being listed on the exchange.
Shift in Market Share
The report highlights that Binance’s loss in market share has benefited other exchanges. Upbit, a Korean crypto exchange, saw the most significant increase, with its spot market share rising from 5% to 15.3% over the past year. When considering all crypto trading volumes, including both spot and derivatives, Binance’s market share stood at 51.2% in October 2023.
The top five exchanges in terms of overall market share were Binance (51.2%), OKX (13.4%), Bybit (9.6%), Bitget (7.0%), and MEXC Global (6.9%). Although Binance remains in the lead, its gap against main competitors, such as OKX, has narrowed. In October 2022, Binance’s overall market share was 54.6%.
Other exchanges, including Bybit, Bitget, and MEXC, have emerged as second-tier players, collectively holding a market share of 42.3%. Huobi, Kucoin, Gate, and others form the third-tier group, with Huobi gradually falling behind.
Social Media Impact
The report also analyzes the correlation between an exchange’s market performance and its website traffic and social media followers. Interestingly, the researchers found that Binance’s share of Twitter followers has decreased by 5% in the past year, despite an overall increase in their follower count. At the same time, OKX saw a significant growth of over 200% in raw follower count.
It’s important to note that the report emphasizes the limited correlation between website traffic and social media followers with an exchange’s market performance. Other factors, such as trading volume, liquidity, and listing strategies, play a more significant role in determining market share.
Editor Notes: Uber Crypto News
It’s interesting to see the shifting landscape of the cryptocurrency exchange market. Binance, once the dominant player, is now facing increased competition from other exchanges like Upbit and OKX. This indicates the dynamic nature of the cryptocurrency industry, where market share can change rapidly.
For more insights and updates on the world of cryptocurrencies, be sure to visit Uber Crypto News. Stay informed and make informed decisions in this ever-evolving market.