Cryptocurrency exchange Binance is rapidly losing market share, giving ground to both smaller centralized competitors and decentralized platforms (DEX).
Cryptocurrency exchange Binance is rapidly losing market share, giving ground to both smaller centralized competitors and decentralized platforms (DEX). According to a report by 0xScope, Binance's share of the spot trading market has dropped from 52,5% to 39,5% over the past year, while its share of the derivatives market has decreased from 50,9% to 42,5%.
The report also notes that smaller exchanges such as Bybit, Bitget, and OKX are actively increasing their market positions.
For example, Bybit has risen from 7th to 2nd place, expanding its market share from 3,2% to 8,51%. Bitget, on the other hand, strengthened its position from 8,2% to 12,7%, which is likely due to its active educational initiatives and partnerships with sports stars like Lionel Messi and the Juventus football club.
“Partnerships with well-known athletes help build trust and recognition, attracting new users to the platform,”
noted Bitget CEO Gracy Chen in an interview with Cointelegraph.
The report also showed that Binance isn’t the only one feeling pressure from DEX competitors. The market share of centralized exchange Crypto.com fell from 15% to below 4% during the same period.
Interestingly, at the same time, trading volumes on decentralized exchanges are growing. In recent months, DEX platforms have surpassed the $250 billion mark in monthly trading volume. Moreover, DEX's share of the spot trading volume stands at 13.6%, meaning that for every $1 billion traded on centralized exchanges, $136 million is traded on DEX platforms.
It's important to note that despite the drop in market share, Binance remains a leader, having processed over $22.5 trillion in trading volume last year. However, whether the exchange will be able to maintain its position in the long term, given the growing success of DEX, remains an open question.
