TL;DR
- Binance and Crypto.com lose market share to smaller competitors and DEXs.
- Bybit and OKX are taking advantage of Binance’s drop, significantly increasing their share.
- Trading volumes on DEXs have grown, reaching 13.6% of total trading volumes.
The cryptocurrency ecosystem is undergoing a remarkable transformation, with centralized exchanges like Binance and Crypto.com losing ground to smaller competitors and the rising popularity of decentralized exchanges (DEXs).
According to a report by 0XScope, Binance, which remains the world’s largest cryptocurrency exchange, has seen a 13% decline in its share of spot trading volume, falling from 52.5% in October 2023 to 39.5% today.
New on 0xScope: The 2024 CEX Market Report
Some of our latest findings:
📊 @Bybit_Official jumps from #7 to #2 in spot trading, now #3 overall behind #1 @binance, #2 @okx
📉 Binance market share shrinks for 2nd straight year, but shows signs of recovery
📈 DEX volume is now 15%… pic.twitter.com/O4bmqDnk7g— 0xScope (@ScopeProtocol) October 21, 2024
Furthermore, its share of the derivatives market has also declined by 8.4%, from 50.9% to 42.5% over the same period.
While Binance is experiencing this decline, other exchanges are capitalizing on the opportunity. Bybit, for example, has seen a significant increase in its market share, rising from seventh place with 3.2% to second place with 8.51%. OKX, meanwhile, has climbed to third place, increasing its share from 5.4% to 6.38%.
This growth is due in part to effective strategies, such as Bitget’s collaborations with renowned athletes and its focus on educational initiatives, which have improved brand trust and recognition.
The impact of these dynamics is reflected not only in the market share of centralized exchanges, but also in the rise in trading volumes on DEXs. Over the past year, DEXs have seen growth in their trading volumes, surpassing $250 billion per month in March and June, accounting for 13.6% of total trading volume on CEXs. This shift in market dynamics indicates that DEXs are beginning to establish themselves as serious competitors to traditional CEXs.
Future prospects in the cryptocurrency market
Despite the losses suffered by Binance and Crypto.com, the cryptocurrency trading landscape remains complex.
Although Binance has seen a decline in its market share, it has maintained a dominant position in terms of total volume, processing over $22.5 billion worth of trading over the past year. However, its recent growth in market share also suggests a potential recovery, which could make it even more difficult for exchanges like OKX, Bybit, and Bitget to gain more users.
Competition is heating up as DEXs continue to gain ground. Traders seem to be increasingly interested in the options offered by these decentralized platforms, especially for the privacy and control they provide over their assets. This trend may force CEXs to innovate and improve their offerings to retain their users and attract new ones.
The cryptocurrency sector is in a phase of transformation , where the strategies of smaller exchanges are challenging the hegemony of market giants. With the growing interest in DEXs and the need for adaptation by CEXs, the future of cryptocurrency trading promises to be dynamic and full of opportunities for both users and platforms looking to stand out in this competitive environment.