CCData: Binance's cryptocurrency spot trading market share has dropped to only 30%! OKEx, Bybit are catching up rapidly

CCData data from last week shows that following a series of allegations and lawsuits lasting 8 months, cryptocurrency exchange Binance has seen a 70% drop in monthly trading volume and its market share has fallen to 30%. Meanwhile, OKX and Bybit, as the runners-up, have experienced rapid growth in the past year, with their combined market share in spot and derivatives markets reaching a historic high.

Binance's Market Share of Crypto Trading Tumbled to 30% in 2023

Since March and June this year, Binance has been involved in lawsuits with the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), accusing violations including anti-money laundering, operating an illegal derivatives exchange, and illegally providing services to U.S. citizens.

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Coindesk cited data from CCdata indicating that Binance has experienced an unprecedented significant decrease in market share in the spot market this year, dropping from 55% at the beginning of the year to 30.1% in December; and the monthly spot trading volume decreased from nearly $500 billion in January to $114 billion in September, a loss of over 70%.

Similar data aligns with the observations of fund outflows from Binance after CZ stepped down, following the company's settlement with the U.S. Department of Justice, resulting in a $1 billion asset devaluation.

However, CCdata also revealed that despite the continuous decline in Binance's market share, it remains the largest centralized exchange (CEX) by far, leading its competitors.

OKX and Bybit Close in on Binance

Meanwhile, the runner-up and third-place OKX and Bybit have seen significant market growth this year, with the former's market share increasing from just 4% at the beginning of the year to 8% in December.

Data shows that looking at the combined trading volume of spot and derivatives, almost all exchanges have shown a gradual increase in monthly trading volume over the past 3 months. However, Binance's market share has decreased from 60% this year to 42%, while OKX has grown from 9% to 20.2%, ranking second.

Furthermore, Bybit, in third place, holds a 11.94% market share, meaning the combined market share of the two exceeds 32%, reaching a historical high in total market share.

CCData commented that with the recent conclusion of Binance's lawsuits, the situation has come to a close, but Coinbase's SEC case is still ongoing. The standout data of OKX and Bybit highlights the response and changes in the CEX market to these events, particularly the noticeable increase in demand seen after September.

Executive Departures and CZ's Step Down: What's Next for Binance?

Previously, Binance and its former CEO CZ reached a settlement last month with the U.S. Commodity Futures Trading Commission (CFTC) for $4.3 billion, and separately settled with the U.S. Department of Justice and Treasury.

Additionally, Binance has faced the departure of over 10 executives since the beginning of this year, including regional heads, strategists, and several compliance and legal advisors, which was seen as a warning at the time, undoubtedly impacting the personnel structure and stability of Binance.

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