0xScope has recently released research data on centralized exchanges (CEXs) in the past year, shedding light on the evolving landscape in the crypto market. Binance, a prominent player in the industry, still holds the top position with a market share of 51.2%. However, Binance’s market share has experienced a notable decline from its high of 54% to approximately 45% over the past year, signaling a shift in the competitive dynamics.
OKX has emerged as a strong contender in the CEX space, securing the second-largest position for both spot and derivative trading. Bybit, Bitget, and MEXC closely follow in the second tier of exchanges, while Huobi, KuCoin, and others form the third tier, reflecting the market’s evolving landscape.
Spot Trading: Binance Faces Competition
In spot trading, Binance faces challenges not only from traditional competitors like OKX and Coinbase but also from Upbit, which has gained a significant market share of nearly 15% in the past three months, largely due to the thriving South Korean market. Other exchanges like Bybit, Bitget, and MEXC have also successfully captured a share of the trading volume through active listing strategies.
Regarding derivatives trading, Binance’s impact has remained relatively stable, but its main competitors have gradually increased their market shares over the past year. OKX, Bybit, Bitget, and MEXC make up the second tier of derivatives exchanges, collectively accounting for 42.3% of the market share.
On the asset value front, Binance still dominates other exchanges, but its market share has decreased by approximately 5% in the past year. OKX and Coinbase, two of Binance’s primary competitors, have seen an increase in their share of funds during this period.
The number of deposit addresses provides insight into an exchange’s user base, and Binance and Coinbase have nearly equal numbers of deposit addresses, totaling over 60% of the entire CEX market. However, the data should be interpreted with caution, considering the variability in deposit and withdrawal rules across exchanges.
In terms of website traffic and social media followers, while these metrics may not directly correlate with an exchange’s performance, they offer a glimpse into related trends. Binance’s website traffic has experienced a gradual decline over the past six months, while OKX has seen rapid growth in the number of Twitter followers, nearly tripling over the past year.
Nevertheless, the cryptocurrency market is ever-evolving, with shifts in market share, competition, and user engagement. These findings from 0xScope’s research provide valuable insights into the changing landscape of CEXs in 2023.
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