Binance spot trading market share drops to 40% by 2023: Report

Crypto exchange Binance's market share in spot trading fell to 40% by the end of 2023, compared to 62% a year ago.

According to a Nov. 6 report by blockchain analytics firm 0xScope, the exchange has lost a third of its market share over the past 12 months. “Noted coins experienced a decline immediately after being listed on Binance,” researchers wrote, “Binance's spot trading has seen a significant decline over the past year. At the same time, Korean crypto exchange Upbit has seen a significant increase, with its spot market share exceeding 5% over the same period.” It grew to 15.3%.

When all crypto trading volumes, including spot and derivatives, are included, Binance's market share reached 51.2 percent in October 2023. This is followed by OKX (13.4%), Bybit (9.6%), Bitget (7.0%) and MEXC International (6.9%).

“While still in the lead, Binance has seen its gap narrow against major competitors such as OKX and other secondary exchanges,” the researchers wrote, noting that its overall market share reached 54.6 percent by October 2022.

During this period, BayBit, BitGate and MXC grew into secondary exchanges, followed by Binance and OKX, with a combined market share of 42.3%. Researchers say that “Huobi, which has gradually fallen behind, will form the third tier along with Kucoin, Gate and others.”

While website traffic and social media followers have “little to no correlation” with an exchange's market performance, the 0xScope team found that Binance's Twitter followers dropped by 5% over the past year, despite an overall increase in base value. At the same time, OKX has grown its raw followers by over 200%.

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