Established cryptocurrency exchanges like Binance and Crypto.com are losing market share as decentralized exchanges (DEXs) keep growing in popularity.
Binance, the world’s largest crypto exchange, saw a year-over-year drop in its spot trading volume, slipping from 52.5% in October 2023 to 39.5% by October 2024. Likewise, its share of the crypto derivatives market fell from 50.9% to 42.5% during the same period, according to a report from 0XScope.
Smaller exchanges, including Bybit, Bitget, and OKX, have benefited from Binance’s shrinking dominance. Bybit, for instance, surged from seventh place with a 3.2% market share last year to second place with 8.51%. OKX also made modest gains, climbing from 5.4% to 6.38%, while Bitget saw a decent rise in market share, from 8.2% to 12.7%, driven by strategic partnerships and user-centric initiatives.
Crypto.com also saw a steep decline, with its market share dropping from 15% in October 2023 to below 4% by February 2024. This fall coincided with market gains by both Binance and Upbit.
Meanwhile, decentralized exchanges (DEXs) are gaining serious traction in the crypto world. DEX trading volumes surged past $250 billion in both March and June 2024, a level not reached since December 2021.
By mid-October, DEX volumes made up 13.6% of the total crypto market, meaning that for every $1 billion traded on centralized exchanges (CEXs), $136 million was being traded on decentralized platforms.
Despite the growing presence of DEXs, centralized exchanges still control the majority of the market, processing a massive $54 trillion in trading volume over the past year. Binance alone handled $22.5 trillion, highlighting its dominant position even as its market share continues to shrink.
However, Binance has seen some recovery in recent months, with its market share trending upward since the start of 2024. The report suggests that if this trend continues, rival exchanges such as OKX, Bybit, and Bitget may struggle to capture more market share, particularly as DEX trading volumes continue to climb.
