As smaller rivals and the rising popularity of decentralized exchanges (DEXs) challenge centralized exchanges (CEXs), the scene of cryptocurrencies is fast changing. Over the past year, Binance, the biggest crypto exchange worldwide, has clearly lost market share. From 52.5% in October 2023 to 39.5% by October 2024, its spot trading volume fell. Likewise, over the same period, its percentage of the futures market dropped from 50.9% to 42.5%.
This fall has let rival exchanges seize the chance for profit. From the seventh place with 3.2% market share to second place with 8.51%, Bit, for example, has seen a notable climb. Driven by smart alliances and user-oriented campaigns, OKX also acquired ground and raised its market share from 5.4% to 6.38%; Bitget saw its share rise from 8.2% to 12.7%.
Similar difficulties have beset Crypto.com, whose market share dropped from 15% in October 2023 to less than 4% by February 2024. Reflecting the very competitive character of the market, Binance and Upbit both experienced increases alongside this precipitous fall.
Distributed exchanges are making major progress in the meantime. DEX trade volumes jumped over the last year, exceeding $250 billion in March and June—levels not seen since December 2021. As of mid-October, DEX volumes accounted for 13.6% of the total crypto market, meaning that distributed platforms traded $136 million for every $1 billion moved on CEXs.
In terms of overall trading volume, centralized exchanges still rule even with these developments. With Binance handling $22.5 trillion of the astonishing $54 trillion in the last year, the 22 biggest CEXs underlined their ongoing impact even with a drop in market share.
Binance’s market share has been increasing since the beginning of 2024, following a recent comeback. For CEXs, the ongoing growth of DEXs presents a unique challenge. Competitors such as OKX, Bybit, and Bitget may face increasing challenges if this trend continues to capture a larger share of the market. Traditional exchanges will have to innovate to remain competitive in the changing crypto scene as distributed platforms continue to gain appeal.
