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Binance's Global Crypto Reign Falters
15 Jan
Summary
- Binance spot trading share dropped to 25% in December.
- Derivatives market share for Binance fell to about 35%.
- Trading activity is shifting to offshore exchanges like Bybit.
Binance, once the undisputed leader in cryptocurrency trading, is experiencing a significant decline in market share. In December, its share of the spot trading market dropped to 25%, its lowest point since January 2021. The exchange's dominance in derivatives, a larger segment of its business, has also eroded, falling from a peak of nearly 70% to about 35%.
Much of the trading volume that has departed Binance is migrating to offshore exchanges like Bybit, HTX, and Gate. US-based platforms have seen only modest gains, suggesting a broader trend away from established centralized exchanges. This shift is also driven by the rise of on-chain trading platforms, altering how and where traders operate.
Binance's market share peaked in 2023 following aggressive promotions and industry turmoil, including the collapse of FTX. Despite recent leadership changes and efforts to expand its regulatory presence globally, data indicates that Binance's market share is no longer what it once was, signaling a more competitive and fragmented crypto landscape.
