30s Summary

Binance and Crypto.com are seeing decreased market shares as smaller crypto exchanges and decentralized platforms gain momentum. Binance’s trade volume has fallen over 13%, with its crypto derivatives market share now at 42.5%. Smaller exchanges like Bybit, Bitget, and OKX have capitalized on Binance’s losses. Crypto.com’s market share has also dropped from 15% to less than 4%. The emergence of decentralized exchanges poses a new challenge to traditional players, with trading volumes reaching a monthly $250 billion. Despite losses, the 22 largest centralized exchanges, including Binance, processed a combined $54 trillion in trading volume in the past year.

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Big crypto players, Binance and Crypto.com are losing their footing as smaller rival exchanges gain popularity and decentralized platforms rise in popularity.

In the world of cryptocurrency exchanges, Binance, one of the biggest ones out there, has seen a drop in its trade volume by over 13% from October 2023 to now. This means it now has less of the market’s “piece of the pie”, sitting at just under 40%.

Not only that, but Binance has also seen a drop in its share of the crypto derivatives market – it used to hold over half the market share, but now that’s dropped to around 42.5%, according to a report by 0XScope.

Interestingly, smaller exchanges like Bybit, Bitget, and OKX have been quick to jump in and gain from Binance’s losses. Bybit, for example, has leapt from being the seventh largest exchange to the second, more than doubling its market share in the process. OKX, sitting in third place, has also seen a slight increase.

Bitget has also increased its market share from 8.2% to 12.7%, partly due to their focus on education, user-friendly development, and strategic partnerships, according to their CEO, Gracy Chen. She believes their collaborations with big-names like football player Lionel Messi and football team Juventus have helped them attract more users to their platform.

Binance isn’t the only big player facing decline, Crypto.com has also seen its market share drop from 15% to less than 4% in the same period, as Binance and Upbit increased their market shares.

A new challenge to both these typical crypto exchanges is the rise of decentralized exchanges. These have seen growth in trading volumes up to a monthly $250 billion mark, for the first time since December 2021. In fact, for every $1 billion traded on centralized exchanges, $136 million was traded on decentralized platforms as of October 17.

But let’s not forget, the 22 largest centralized exchanges, including Binance with volume over $22.5 trillion, are still dominant, having processed a combined $54 trillion worth of trading volume in the past year.

The report notes that even though Binance’s market share has shown a decline, it’s been on the rise again since the beginning of this year. It’s spot market share remained above 40% for most of this year and its derivatives market share shuffled between 45% and 50%. But the competition is growing stronger day by day, so let’s see how things shake out.

Source: Cointelegraph