Binance, one of the world’s largest cryptocurrency exchanges, has been facing a series of challenges that have impacted its dominance in the market. These challenges include a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in June 2023, accusing the exchange of mismanagement of client funds and listing unregistered securities. Additionally, Binance’s strategy of listing new coins, which often leads to a decrease in their value after listing, has also contributed to its declining position.
Despite these hurdles, Binance still holds the largest crypto asset value among centralized exchanges (CEXs), maintaining a consistent 45% throughout the year. However, when looking at deposit addresses opened at each exchange, Binance shares an equal footing with Coinbase, with both exchanges accounting for around 30% each.
In contrast to Binance’s declining fortunes, other exchanges like OKX have taken advantage of the changing landscape. OKX’s volume share has risen significantly from 10.5% to 16.1%, establishing itself as a strong competitor within the sector.
The spot market also reflects Binance’s diminishing market share, with its share dropping from 62% to just 40%. On the other hand, Upbit has made significant gains, increasing its share from 5% to 15%. In the derivatives market, Binance experienced a smaller decline from 50% to around 45%.
Binance’s challenges are occurring amidst increased competition from various exchanges and changing market dynamics. While Binance still remains a significant player, accounting for about 40% of active addresses, it is evident that the crypto exchange market is becoming more contested as rivals like OKX continue to expand their presence.
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