A report from Tokeninsight shows that the crypto exchange Binance saw its market share reduce in 2023, facing the rise of OKX and Bybit. Binance’s dominance in the crypto trading sector is eroding, although it retains its first place in volumes traded.
The decline in Binance’s market share
According to Tokeninsight, Binance’s crypto market share fell from 54.2% at the start of 2022 to 48.7% in 2023. A drop of almost 6 points, significant on the scale of this market. The main beneficiaries of this erosion are OKX and Bybit. OKX saw its share increase by 4.3 points over the period, to reach 15%. The platform owned by the OKG group is now clearly positioned as the second player in the sector.
For its part, Bybit almost doubles its market share, from 2.5% to 4.7%. The Singaporean crypto platform is accelerating its rise thanks to features focused on professional traders. Despite this relative decline, Binance still retains almost half of the market. It remains number one worldwide in transaction volumes, ahead of Upbit and OKX according to the report. In the derivative segment, Binance also dominates, followed by OKX and Bybit.
Growing competition between crypto platforms
This study highlights the intensification of competition in the crypto exchange sector. Binance is under increasing pressure from dynamic players such as OKX and Bybit.
Moreover, we can add that Bitget is not left out and is part of the top 6 global exchanges, even reaching the top 4 if we analyze derivative products. BGB, the cryptocurrency of the Bitget exchange, has seen growth of almost 200% and is part of the top 3 exchange platform tokens. Finally, Bitget ranks third in terms of variety of cryptos available on its platform.
Several factors explain the erosion of Binance:
- Improving its competitors’ offerings, both in terms of functionality and liquidity
- Regulatory restrictions affecting Binance in certain countries
- A diversification of choices for crypto users, who no longer hesitate to register on several exchanges
Binance’s unrivaled dominance is now a thing of the past. The platform must deal with ambitious challengers, ready to compete in all niches, from spot to derivatives including algorithmic trading. This development stimulates innovation and guarantees better quality services for users, who benefit from a more competitive environment.
Tokeninsight’s analysis reveals changes taking place in the crypto exchange market. Binance’s dominant position is crumbling under pressure from emerging players like OKX and Bybit. This study highlights the increasingly competitive nature of this sector, where liquidity and innovative features make the difference. Users are the first beneficiaries of this intensification of competition.
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