Binance's Market Share in Spot Trading Drops to 40% in 2023: Report

Significant Decline in Market Share

Binance, one of the leading cryptocurrency exchanges, has seen its market share in spot trading drop to 40% in late 2023, compared to 62% the previous year, according to a report by blockchain analytics firm 0xScope. The exchange has lost one-third of its market share in the past 12 months, with researchers attributing this decline to Binance's listing strategy. Many popular coins experienced a downturn immediately after being listed on the platform.

Upbit Emerges as a Competitor

Meanwhile, Korean crypto exchange Upbit has experienced a significant increase in its spot market share, rising from 5% to 15.3% during the same period. This growth has contributed to Binance's shrinking gap against main competitors, such as OKX and other second-tier exchanges. Overall, Binance's market share in all crypto trading volumes, including spot and derivatives, stood at 51.2% in October 2023.

Second-Tier Exchanges on the Rise

Second-tier exchanges, including Bybit, Bitget, and MEXC, have grown to become strong competitors to Binance and OKX, with a combined market share of 42.3%. On the other hand, Huobi, which has fallen behind, forms the third tier along with Kucoin, Gate, and others, according to the researchers.

Twitter Follower Count

While website traffic and social media followers may not directly correlate with an exchange's market performance, the report found that Binance's share of Twitter follower count has decreased by 5% in the past year, despite an overall increase in base value. In contrast, OKX saw its raw follower count grow by over 200%.

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