• 28 May, 2024

Binance’s Dominance Among CEXs Wanes as Competitors Rise: Report

The latest 2023 CEX Market Report by 0xScope, the Knowledge Graph protocol, offered a comprehensive dive into the shifting sands of the centralized exchanges (CEXs) market. It revealed that over the past year, Binance has seen its dominance waver, with a 10% decrease in trading volume and a continuous decline in key indicators. OKX has emerged as a robust contender, securing its place as the second-largest exchange, closely followed by Bybit, Bitget, and MEXC.

Examining data from October 17, 2022, to October 17, 2023, analysts have dissected the trends shaping the industry. The report revealed significant changes have rippled through the CEX ecosystem, challenging the status quo.

In the realm of spot trading, Binance faces stiff competition not only from traditional rivals like OKX and Coinbase but also from Upbit, which gained a remarkable 15% in the past three months due to South Korea’s thriving market. Coinbase has remained relatively stable with a market share ranging from 5% to 7%, while Bybit has experienced growth, reaching the 6%-7.5% range.

In derivatives trading, Binance continues to hold a substantial share at 50.9%. Despite this, the market share has slightly decreased from previous levels. OKX, Bybit, Bitget, and MEXC collectively form the second tier of derivatives exchanges, accounting for 42.3% of the market share. 

While trading volume remains crucial with Binance, despite its decline, it remains dominant in assets value, though OKX and Coinbase have made significant strides in this area. Binance’s market share stands at 45%, a noticeable drop from its peak at 54.6% in October 2022. This decline coincides with the rise of other major players, notably OKX, which now holds 16.1% of the total trading volume, compared to 10.5% just a year ago.

After analyzing the on-chain data, it was found that the top five cryptocurrency exchanges namely Binance, Coinbase, Bitfinex, OKX, and Kraken account for more than 80% of the total market exchange funds. Although Binance still holds the top spot, it has experienced a 5% decline in its market share over the past year, which may have been captured by its competitors, Coinbase and OKX.

Furthermore, examining the number of deposit addresses reveals interesting user trends. Binance and Coinbase together represent over 60% of the entire CEX market, indicating their established user base. OKX and Binance exhibit similar activity levels in terms of deposit addresses, which suggests comparable user engagement.

Social media followers and website traffic, while not directly indicative of performance, provide intriguing insights. Binance has witnessed a slow decline in website traffic over the past six months, accompanied by a decrease in its Twitter followers’ share, dropping from 45% to approximately 40%. In contrast, OKX has experienced rapid growth, nearly tripling its Twitter followers in the past year.

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