Binance’s supremacy in the centralized cryptocurrency exchange sector has diminished over the past year, as outlined in a recent report by 0xScope.
Data from the blockchain analytics firm indicates that Binance’s trading volume and various metrics have decreased by approximately 10% overall. Simultaneously, competition from OKX and other “second-tier exchanges” has intensified.
Competitors in the Secondary Tier Against Binance
As per the report, Binance continues to lead in terms of global crypto volume, holding a 51.2% share of CEX volume between October 17, 2022, and October 17, 2023.
However, this dominance has seen a decline on a weekly basis. Starting at 54.6% in October 2022, Binance’s market share has diminished to approximately 45% since July.
Concurrently, OKX’s volume share has surged from 10.5% last year to 16.1% in the latest recorded week, solidifying its position as a “solid no.2” among exchanges. Following closely are Bybit, Bitget, and MEXC, all of which have demonstrated “healthy growth trends” in the past year.
Notably, major exchanges like Upbit and Coinbase were excluded from the ranking due to their lack of derivatives trading volume. In the spot market, both exchanges secured the second and third-largest positions, with Upbit’s share notably improving from 5% to 15% within a 52-week period.
During this period, Binance’s spot market dominance plummeted to 40%, down from 62% a year ago. The report suggests that this decline may be attributed to Binance’s listing strategy, as many popular coins experienced a drop in value immediately after being listed on the platform.
In contrast, Binance’s derivatives volume has displayed more stability, although it has decreased from 50% earlier in the year to 45% in recent weeks. During the same period, OKX’s volume share rose from 10% to 15%.
Binance faced a significant lawsuit from the U.S. Securities and Exchange Commission (SEC) in June, with allegations ranging from mismanagement of client funds to the listing of multiple unregistered securities.
An In-Depth On-Chain Analysis
Examining blockchain data reveals that Binance retains the highest proportion of crypto asset value among centralized exchanges (CEX) at 45%, a slight decrease from the previous year’s 50%. Noteworthy contenders in this regard include Coinbase and Bitfinex, with the latter having a significant association with Tether, which maintains $85 billion in reserves.
However, Binance’s dominance diminishes significantly when considering the number of deposit addresses created on each exchange. Binance and Coinbase share an equal weighting at approximately 30% each. Yet, Binance’s share increases to 40% when exclusively considering active addresses.