Solana

Orca

In the fast-paced world of crypto, few platforms have commanded as much attention and influence as Binance. However, recent developments have sent shockwaves through the industry, as Binance’s market share experiences a significant downturn following the departure of its charismatic founder and CEO, Changpeng Zhao, commonly known as CZ.&nbsp;
The numbers tell a compelling story, revealing a notable decline in Binance’s dominance within the crypto exchange landscape.
<h2 class="wp-block-heading" id="binance-tumbles-after-cz-s-exit">Binance tumbles after CZ’s exit</h2>
According to the most recent report by <a href="https://tokeninsight.com/en/research/reports/crypto-exchanges-2023-annual-report" rel="noopener noreferrer nofollow" target="_blank">TokenInsight, </a>notable exchanges experienced fluctuations in market share and trading volume in 2023. Specifically, Binance experienced a decline in market share from 54.2% to 48.7%, whereas OKX and Bybit saw respective increases of 4.3% and 2.2%.
In terms of annual trading volume, Binance, OKX, and Bybit are in the first three positions, whereas Upbit, OKX, and Binance hold the lead in derivatives. Beginning in 2023, Binance maintained its industry-leading position with a market share of 54.2%.&nbsp;
<figure class="wp-block-image"><img decoding="async" src="https://lh7-us.googleusercontent.com/1jtv54NI9Ed1fzLOe15xyGawrhk470IqL6hPP_Ai7_KREybbfGONMqv9rwGC5WjeniqribvO_BQD644mkOyIGTehWLOaaNmSIDro0Nisy3quzY70BwpoPgqMhlrUJES5JTYxSJD_ms4FrtKeon-1U-4" alt="">
</figure>
After experiencing a brief decline of 32% due to the subsequent resignation of CEO CZ, Binance swiftly restored its position and ended the year with a market share of 48.7%.
As per the report, traders’ trust in Binance has been bolstered by the platform’s ability to withstand regulatory obstacles and its dedication to protecting user funds, thereby averting a more significant decline in market share. In contrast to initial projections, the year witnessed a mere 5% decline in market share.
OKX and Bybit emerged as the primary beneficiaries of Binance’s decline, witnessing substantial growth in their market shares of 2.2% and 4.3%, respectively. With a market share of 15.7%, OKX achieved the second position, whereas Bybit maintained the third position with a market share of 11.6%.
<h2 class="wp-block-heading" id="derivatives-market-share">Derivatives market share</h2>
Binance maintained its market-leading position with a 53.7% spot and futures trading share. It’s worth noting that in 2022 this figure was 60.1%, representing an almost 6.5% reduction. Despite the aforementioned key events’ impact, Binance maintains an absolute lead over rival exchanges.
<figure class="wp-block-image"><img decoding="async" src="https://lh7-us.googleusercontent.com/3wXy8Vj5lJbf2RpTeZMoBS2RmEWVReN1PLbjpCE9dtrkdLkxlEVrTw17a-3nneyGsyh0BcBtvrTvVAvkPm-7ZBLMOH07ATiC7YxGNNj0WZnMcDi6nRllOsb9CvIO7srOrACLz3r-OqM6bT6R2AMJ6lU" alt="">
</figure>
OKX and Bybit rank second and third, with market shares of 15.7% and 11.6%, respectively. OKX ranks among the top three in spot and derivatives trading volumes. Upbit ranked second in spot trading volume. However, due to the significant disparity between derivatives and spot trading volumes, it did not make it to the total trading volume ranking.&nbsp;
Similarly, Coinbase rated fourth in spot trading volume but eighth in total trading volume due to its low derivatives volume.
Bybit, Bitget, KuCoin, Gate, Kraken, and Bitfinex all make it into the top ten on both rankings. Upbit and Coinbase only make the top ten for spot trading. However, BitMEX and Deribit make the top ten for derivatives.
<h2 class="wp-block-heading" id="binance-s-market-dominance">Binance’s market dominance</h2>
Binance’s market share fell from 55.9% at the start of the year to 50.4% by the end of the year, but its performance remained solid. Despite one of the most major regulatory events in history, market share decreased by only 5.5%, exceeding market forecasts.
<figure class="wp-block-image"><img decoding="async" src="https://lh7-us.googleusercontent.com/YHOTqrrjGGfd97hSaRhUnl8K6wQhbD6vQoIuVOlrmym5u-eA92ldRp51teJJguM-3A_u0tCtoIoLZqIgtfg2nzmDX67bf3lcqnbUnetcTQq9_m628caA08I_IDVWMESxVtO_hr9BiwfLkvr_WVzaeV8" alt="">
</figure>
OKX’s market share reached 19.4%, up nearly 4% from the start of the year. At the start of the year, the market share disparity between Bybit and OKX was just about 2%, but by the end of the year, it had grown to 4.4%. Bitget follows closely after, with a market share of roughly 9%.
Gate and KuCoin, on the other hand, showed constant performance throughout the year, with market shares hovering between 2-3%.
Additionally, the report discusses the operational aspects of decentralized exchanges (DEX). Notwithstanding the obstacles encountered by centralized exchanges, DEX upheld stability throughout 2023, contributing an estimated 2.83% of the overall trading volume.
Diverse market share growth was observed for platforms such as Orca and PancakeSwap, whereas the Solana ecosystem garnered significant attention. The report examined the performance of exchange currencies, with particular emphasis on substantial increases in price. The increases in FTT, MX, and BGB surpassed 200 percent, outperforming the market as a whole.
<figure class="wp-block-image"><img decoding="async" src="https://lh7-us.googleusercontent.com/pE9g_YhiGa2yF_WfhbLO6ZC8D0nGVIDRtHZZU1l2vGG-mWgWtm9may2m9pUEuUAf3Lo4fhaqUSKQAbsbCC7SxEJ0bGNSntLGJRXdsgSZ8I_L9lnfq6EMgujkP9J-SQJ1KA7aIBlkSTrrNRnxYM4ozIM" alt="">
</figure>
With a 400% increase, Trader Joe’s native token, JOE, dominated the decentralized exchange token sector. Furthermore, the examination of liquidity ratios revealed that different tokens exhibited different levels of liquidity. Notably, HT, which possessed a comparatively high liquidity, encountered a decline in price.

Binance’s market share plummets after CZ’s exit – The numbers don’t lie!

Table of Contents

Cryptopolitan_News

Other articles published on Jan 21, 2024

Crypto markets’ growth in 2023 -The numbers as per CoinGecko

ETH’s $5 Transaction Fee Nightmare: Investor Laments Concerns for dApp

Spotlight on Timeswap and Dolomite: Emerging Crypto Projects with Unique Features

Binance Launches In Thailand; Attention Shifts to Celestia (TIA) and InQubeta (QUBE)

Jim Cramer urges for caution amid spot Bitcoin ETF approval

Crypto Whales Taking Advantage of Bitcoin, Ethereum and Chainlink Dips, According to Lookonchain

Join our free newsletter for daily crypto updates!