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Binance’s spot trading market share falls to 40% in 2023: Report

November 6, 2023

Binance’s market share in spot trading has fallen to 40% in late 2023, compared with 62% a year ago.
The exchange has lost one-third of its market share in the past 12 months.
Binance’s spot trading volume has seen a significant decline, possibly due to its listing strategy.
Korean crypto exchange Upbit saw the most significant increase in spot market share, from 5% to 15.3% in the same period.
When considering all crypto trading volumes, including spot and derivatives, Binance’s market share was 51.2% in October 2023.
OKX followed with a market share of 13.4%, followed by Bybit (9.6%), Bitget (7.0%), and MEXC Global (6.9%).
In October 2022, Binance’s overall market share was 54.6%.
Bybit, Bitget, and MEXC have grown to become “second-tier” exchanges, with a combined market share of 42.3%.
Huobi, Kucoin, Gate, and others form the third tier.
Binance’s share of Twitter follower count has decreased by 5% in the past year, while OKX grew its follower count by over 200%.

Crypto exchange Binance has experienced a decline in its spot trading market share, dropping to 40% in late 2023 from 62% a year ago, according to a report by blockchain analytics firm 0xScope. The report highlights that Binance has lost one-third of its market share in the past 12 months, with its spot trading volume seeing a significant decline. This decline is attributed to Binance’s listing strategy, where most popular coins experienced a downturn immediately after being listed on the exchange. In contrast, Korean crypto exchange Upbit saw a significant increase in its spot market share during the same period.

When considering all crypto trading volumes, including both spot and derivatives, Binance’s market share was 51.2% in October 2023. However, Binance’s lead has been narrowing against main competitors like OKX and other second-tier exchanges, with its overall market share standing at 54.6% in October 2022. Second-tier exchanges such as Bybit, Bitget, and MEXC have seen growth and now hold a combined market share of 42.3%, trailing behind Binance and OKX. Meanwhile, Huobi, Kucoin, Gate, and others form the third tier.

Interestingly, the report finds that there is little correlation between website traffic and social media followers with an exchange’s market performance. Despite an overall increase in base value, Binance’s share of Twitter follower count has decreased by 5% in the past year. In contrast, OKX has experienced a significant growth of over 200% in its raw follower count.

Overall, the report suggests a decline in Binance’s market share in spot trading, reflecting changes in the competitive landscape of the crypto exchange industry.