Connect with us

Hi, what are you looking for?

Binance
Binance

Cryptocurrency

Binance’s market share falls as competition from rivals and DEXs intensifies

Once the major participant in the crypto exchange scene, Binance is losing ground to rivals like Bybit and OKX as they become more well-known. Also witnessing a notable increase are decentralized exchanges (DEXs), which threaten established centralized exchanges.

The biggest bitcoin exchange in the world, Binance, is seeing a clear drop in market leadership. Both centralized rivals and distributed exchanges (DEXs) have seen notable increases over the past year, erasing Binance’s once-dominant lead bit-wise.

According to a recent estimate, Binance’s share of the spot trading market decreased by 13%, from 52.5% in October 2023 to 39.5% by October 2024.Similarly, during the same period, Binance’s share of the crypto derivatives market decreased from 50.9% to 42.5%..

Although Binance leads in overall trading volume, other exchanges such as Bybit, Bitget, and OKX are fast gaining ground. In particular, Bitwise has significantly increased its market share from 3.2% in 2023 to 8.51% in 2024, placing it second behind Binance. OKX’s market share has slightly increased from 5.4% to 6.38%, while Bitget’s market share has increased from 7% to 10.28%.

This development transcends centralized exchanges as well. Decentralized exchanges (DEXs) are also gaining popularity. DEX trade volumes over the last year have topped $250 billion per month—a level not seen since 2021. Showing increasing interest in distributed trading platforms, DEX spot trading volume accounted for 13.6% of the overall volume handled by centralized exchanges as of October 2024.

Processing about $22.5 trillion in trade volume over the past year, Binance is the biggest participant in the centralized exchange (CEX) market despite these difficulties. However, the competition is intensifying, with DEXs emerging as formidable players in the cryptocurrency trading landscape alongside their centralized counterparts.

Legal disputes, including one brought by the U.S. Securities and Exchange Commission (SEC) in June 2023, have made Binance’s problems worse. After discovering no evidence of illegal customer cash use, Binance agreed to pay a $4.3 billion punishment, among the biggest in history. Anti-Money Laundering (AML) infractions were blamed.

Notwithstanding these losses, Binance is beginning to show indications of healing. While rivals and DEXs seize the changing terrain in the bitcoin exchange ecosystem, the exchange stays strong and keeps changing to meet market and regulatory difficulties.

Advertisement

You May Also Like

Cryptocurrency

In this week's Crypto Chronicle, we explore Meta's new AI search engine that aims to reduce reliance on Google and Microsoft, Banco Bisa's custody...

Business

Three days following its launch, Bitget Wallet Lite had amassed 6 million users on Telegram, demonstrating its quick success. This multichain wallet seeks to...

Cryptocurrency

Giancarlo Giorgetti, Italy's finance minister, has defended a plan to raise the capital gains tax on cryptocurrency trades to 42%. He supports the tax...

Cryptocurrency

As Election Day draws near, Donald Trump is mobilizing supporters of cryptocurrency by promising to stop existing administration policies he says are anti-crypto and...

polkadot
Polkadot (DOT) $ 3.92 4.31%
bitcoin
Bitcoin (BTC) $ 70,886.99 4.26%
ethereum
Ethereum (ETH) $ 2,467.28 2.68%
cardano
Cardano (ADA) $ 0.338294 3.26%
xrp
XRP (XRP) $ 0.519124 3.08%
stellar
Stellar (XLM) $ 0.094348 3.60%
litecoin
Litecoin (LTC) $ 66.55 1.09%