News Article:
According to trading volume, the largest centralized exchange (CEX), Binance, has continued to lose market share for the second consecutive year.
Currently, the exchange holds 39.54% of the total spot trading market volume, down from last year’s 52.5%, a decrease of 13% in just 12 months.
However, according to a recent study, Binance’s native token BNB has performed the best among exchange tokens.
Report by 0xScope.
Bitcoin’s rise puts Binance in a predicament
In the past year, the total spot trading volume of 22 exchanges reached $14.6 trillion. Binance still leads with a trading volume of $5.78 trillion, but competition is heating up.
Bybit took advantage of Binance’s decline, jumping from the seventh position last year to the second position, with a market share in the spot trading market rising from only 3.2% to 8.51%. OKX now ranks third with a market share of 6.38%, slightly higher than last year’s 5.4%.
Binance has been on a downward trend for the past two years. In October 2022, Binance held approximately 62% of the market share. By November 2023, its market share plummeted to 30% and then recovered to over 40% for most of 2024.
While Bybit achieved remarkable gains, other exchanges did not perform well. Upbit, which ranked second last year with a market share of 6.8%, has now dropped to the fourth position with a market share of 5.77%.
Coinbase also slipped from the third position to the fifth position, falling from 5.8% to 5.68%. On the other hand, OKX managed to climb to the third position, with its market share increasing from 5.4% to 6.38%.
Meanwhile, the weekly spot trading trends tell a similar story. Binance’s lead in spot trading narrowed to 34% in early 2024, then rebounded to over 45% in the fourth quarter.
In contrast, Upbit’s market share hit a low point of 2%-4% by the end of 2023 but slowly recovered, surpassing 5% in the second quarter of 2024 and reaching 10% in September.
However, Bybit lost momentum after reaching its peak in January, with its market share dropping from 10%-13% to 5.2% in September.
OKX and Bybit shine in derivative trading
In the derivative market, the situation for Binance is generally the same. Among the 22 major exchanges, 11 offer cryptocurrency derivative trading, with a total trading volume of $39.38 trillion, nearly three times the spot trading volume.
OKX and Bybit have solidified their positions as the second and third largest derivative exchanges. OKX’s market share increased from 15.5% to 19.83%, while Bybit’s market share grew from 11.3% to 13.98%.
The fourth-ranked Bitget also made progress, with its market share increasing from 8.2% to 12.73%. MEXCGlobal, which made it to the top five, saw its market share decrease from 7.3% to only 4.27%.
In the past 12 months, the overall market capacity of centralized exchanges has reached $54 trillion, with Binance accounting for $22.5 trillion.
Decentralized exchanges making progress
While centralized exchanges have been struggling, decentralized exchanges (DEX) have quietly made progress. The DEX market has seen significant expansion, processing over $250 billion in transactions in March 2024, a milestone not seen since December 2022.
This trend continued in June, with DEX surpassing the $250 billion mark again. As of October 17, DEX accounted for 13.6% of the total spot trading volume, higher than the 14.18% in May 2023.
For every $1 billion traded on CEX, there is $136 million traded on DEX. These developments are driven by new technologies and features in the DeFi space, such as liquidity staking, cross-chain solutions, and tokenization of real-world assets.
The rise of Ethereum and layer 2 solutions on other networks has also contributed to the growth in DEX trading volume.
Meanwhile, BNB remains one of the top five cryptocurrencies by market capitalization, not only used on the Binance exchange but also on the BNB chain that powers thousands of projects.
BNB’s weekly trading volume reached a peak of $41.32 billion in the week Bitcoin hit its all-time high in March 2024. On average, BNB’s weekly trading volume is around $8.57 billion, far surpassing other exchange tokens.
In terms of price growth, BNB is leading once again. After starting around $200 in October 2023, BNB climbed to $710 in June, hitting a new all-time high. Since March, the price has fluctuated between $500 and $600.