Major cryptocurrency exchanges Binance and Crypto.com are facing increasing competition from smaller rivals and decentralized exchanges (DEXs), which are rapidly growing in popularity.
Binance, the largest cryptocurrency exchange globally, saw its spot trading volume drop by 13% year-over-year, decreasing from 52.5% in October 2023 to 39.5% by October 2024. Similarly, Binance’s share in the crypto derivatives market fell from 50.9% to 42.5% during the same period, according to a research report by 0XScope.
Smaller exchanges such as Bybit, Bitget, and OKX have taken advantage of Binance’s market decline. Bybit jumped to the second-largest spot trading platform, increasing its share from 3.2% to 8.51%, while OKX rose from 5.4% to 6.38%, becoming the third-largest. Bitget also saw a significant increase in market share, from 8.2% to 12.7%, thanks to its focus on user education, platform development, and strategic partnerships with sports teams and athletes.
Crypto.com has experienced a similar downturn, with its market share falling from 15% in October 2023 to less than 4% by early 2024, further reflecting the shift in market dynamics toward other centralized and decentralized platforms.
Summary Review: Binance and Crypto.com are losing market share to smaller exchanges like Bybit, Bitget, and OKX, while decentralized exchanges (DEXs) continue to rise in popularity. Binance’s spot trading volume has dropped by 13% over the past year, and its derivatives market share has also decreased. Meanwhile, Bitget and Bybit have gained ground by focusing on education, user growth, and partnerships with sports figures. Crypto.com has also seen its market share shrink significantly, highlighting the growing competition in the crypto exchange landscape.
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