The end of the Zero-Fee Bitcoin trading promo, the SEC lawsuit, and CEO CZ’s resignation have had an impact on Binance’s market share.
The latest TokenInsight report reveals that 2023 witnessed shifts in market share and trading volume among top exchanges, with Binance’s numbers decreasing from 54.2% to 48.7% while OKX’s and Bybit’s increasing by 4.3% and 2.2%, respectively.
Binance, Upbit, and OKX occupy the top three positions in total annual trading volume, while Binance, OKX, and Bybit are in the lead regarding derivatives.
Binance’s Market Share and Resilience
At the beginning of 2023, Binance held a market share of 54.2%, maintaining a dominant position in the industry. However, events such as the end of the Zero-Fee Bitcoin trading promotion and the SEC filing a lawsuit in June impacted its market share, which dropped below 50%.
The subsequent resignation of CEO CZ led to a temporary dip to 32%, but Binance quickly stabilized, ending the year with a 48.7% market share.
According to the report, Binance’s resilience in the face of regulatory hurdles and its commitment to safeguarding user assets have instilled confidence among traders, mitigating a more substantial decline in market share. Surpassing initial expectations, the year saw only a 5% decrease in market share.
While Binance experienced a decline, OKX and Bybit emerged as the biggest beneficiaries, with their market shares increasing by 4.3% and 2.2%, respectively. OKX’s total market share reached 15.7%, securing the second position, while Bybit claimed the third spot with an 11.6% market share.
The top three in total annual trading volume comprised Binance, Upbit, and OKX, underscoring these platforms’ overall strength and influence despite the changing market dynamics. Binance continued to dominate spot and derivatives trading, holding a 53.7% share. However, this marked a decrease from 60.1% in 2022.
OKX and Bybit secured second and third positions in spot and derivatives trading volumes, showcasing their versatility and market presence. Notably, over 90% of the trading volume in Bybit, Bitget, and OKX originated from derivatives trading, highlighting a trend among these exchanges.
Decentralized Exchanges and Token Performance
The report also sheds light on the performance of decentralized exchanges (DEX). Despite challenges faced by centralized exchanges, DEX maintained stability in 2023, accounting for approximately 2.83% of the total trading volume.
Platforms like Orca and PancakeSwap experienced varying market share growth, with the Solana ecosystem gaining attention. The report delved into the performance of exchange tokens, highlighting significant price surges. FTT, MX, and BGB saw increases exceeding 200%, outperforming the broader market.
Trader Joe’s native token, JOE, led the decentralized exchange token sector with a 400% growth. Additionally, the analysis of liquidity ratios indicated varying degrees of liquidity among tokens, with HT experiencing a price drop despite having relatively high liquidity.