Binance’s Market Share Dips 5% As OKX & Bybit Gain Traction

Binance, a leading cryptocurrency exchange, faced a 5% dip in its market share in 2023. However, despite challenges stemming from regulatory events and the resignation of CEO Changpeng Zhao, the exchange managed to maintain a dominant position. While the crypto trading platform has been witnessing stiff competition from OKX and Bybit as they registered a surge in market share.

Binance Maintains The Top Spot

While a significant drop in market share was noted, Binance still remains the world’s largest crypto exchange. It concluded the year with a market share of around 50.4%, down 5.5% from 55.9% recorded at the beginning of the year. This decline in market share is attributed to the conclusion of Binance’s zero-fee Bitcoin trading promotion in March, according to the latest report by Token Insight, a prominent crypto research firm.

Furthermore, the subsequent legal scrutiny, including a 27-page lawsuit filed by the SEC in June, could have made it worse. However, the report also highlighted the resilience of Binance as its market position faced severe disruption following CZ’s departure. Their market share plummeted to 32%, but it quickly stabilized and gradually rose back to above 45% by the end of the year.

On the other hand, OKX and Bybit expanded their market presence. OKX and Bybit saw their market shares increase by 4.3% and 2.2%, respectively. OKX secured the second position with a market share of 15.7%, while Bybit claimed the third spot with an 11.6% market share. Meanwhile, Binance maintained its stronghold as the top exchange, with a 53.7% share in spot and derivatives trading.

Also Read: Binance Launches DOGEUSDC Perpetual Contract With 75x Leverage

How Did Coinbase & Other Competitors Perform?

The Token Insight report further emphasized the improved performance of Coinbase in the market. Despite a slight decline in trading volume during Q2 and Q3, Coinbase’s trading volume rebounded by the end of the year. Hence, the trade volume exceeded the levels at the beginning of 2023.

Gate.io, another cryptocurrency exchange, stood out by listing 362 new tokens in 2023, bringing its total number of listed tokens to 1,871. This surpassed the number of listed tokens on other centralized exchanges.

In the derivatives market, the top 10 exchanges experienced a significant increase in open interest. The open interest amount reached $35 billion by the end of 2023, reflecting a 60% growth compared to the beginning of the year. Furthermore, crypto trading platforms like Bitfinex, Kraken, Deribit, and Bybit led the growth, registering over 100% surges each.

Also Read: XRP Lawyer John Deaton To Attend Coinbase & SEC’s Face-Off

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