Binance’s Market Share Declines as DEXs and Competitors Rise

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The prominent cryptocurrency exchange Binance is losing ground to smaller rivals and decentralized exchanges (DEXs).

Binance has experienced a 13% decline in its spot trading volume year-on-year, falling from 52.5% in October 2023 to 39.5% this month, as reported on Oct. 21 by 0XScope.

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Decline in Derivative Trading on Binance as Smaller Competitors Rise

The trading volume of crypto derivatives on the leading exchange has followed a similar pattern, showing an 8.4% decrease year-over-year to 42.5% as of October 2024, according to the report.

Check out the latest on 0xScope: The 2024 CEX Market Report

Here are some key insights:
📊 @Bybit_Official climbs from #7 to #2 in spot trading, now #3 overall behind #1 @binance and #2 @okx
📉 Binance’s market share declines for the second consecutive year, but shows signs of recovery
📈 DEX volume now accounts for 15%… pic.twitter.com/O4bmqDnk7g

— 0xScope (@ScopeProtocol) October 21, 2024

Rival exchanges like Bitget, Bybit, and OKX are capturing market share. Bitget jumped from seventh place with a 3.2% market share last year to a strong second, having more than doubled its share to 8.51% during this time, according to the report.

OKX has also increased its market share from 5.4% to 6.38% over the same period. Bitget’s emphasis on educational programs, user-friendly platform enhancements, and various strategic partnerships have contributed to its market share growth from 7% to 10.28%.

Surge in DEX Activity

Lesser-known centralized exchanges aren’t the only ones benefiting from Binance’s declining market presence, as DEX trading volumes have also expanded “significantly,” as noted in the report.

In fact, trading activity on decentralized exchanges exceeded the $250 billion threshold in both March and June this year, marking the first time above this level since December 2021.

Nonetheless, many crypto traders continue to favor centralized exchanges. As of October 17, DEX trading volume compared to centralized exchanges was at 13.6%, indicating that for every $1 billion traded on centralized platforms, approximately $136 million is transacted on DEXs.