Cryptocurrency exchange Binance has witnessed a notable decline in its market share in spot trading, with its share dropping from 62% a year ago to 40% at the end of 2023, according to a report from blockchain analytics firm 0xScope released on November 6. Over the past 12 months, Binance lost a third of its market share, and researchers attribute this decrease to the exchange's listing strategy. Many popular cryptocurrencies experienced downturns shortly after being listed on Binance. During the same period, South Korean cryptocurrency exchange Upbit has seen substantial growth, increasing its spot market share from 5% to 15.3%.
In terms of total cryptocurrency trading volumes, which include both spot and derivatives trading, Binance held a market share of 51.2% in October 2023. This was followed by OKX (13.4%), Bybit (9.6%), Bitget (7.0%), and MEXC Global (6.9%). While Binance remains in the lead, the gap between Binance and key competitors like OKX and other second-tier exchanges is narrowing, with Binance's overall market share standing at 54.6% in October 2022.
During this time, Bybit, Bitget, and MEXC have risen to become "second-tier" exchanges, following Binance and OKX with a combined market share of 42.3%. Huobi, which is gradually falling behind, along with KuCoin, Gate, and others, forms the third echelon of exchanges, according to the 0xScope researchers. They noted that website traffic and social media followers have little correlation with an exchange's market performance. However, they observed that Binance's share of Twitter followers has declined over the past year, dropping by 5%, while OKX's raw follower count has grown by more than 200%.
