- The end of the zero-fee trading program and enforcement actions reduced Binance’s stock.
- OKX and Bybit take the second and third positions respectively.
The performance of centralized exchanges (CEXs) has become a barometer for measuring the health of the broader crypto market.
To this extent, a crypto research firm recently published an annual report report analyzing the performance of the exhibition industry in 2023.
Binance will lose 5% market share in 2023
As always, the focus was on the world’s largest and most popular trading platform, Binance [BNB].
The crypto giant’s market share fell below 50% over the year, indicating that it no longer controls most of the market.
Binance even lost 5% of its market in 2023, from 54.2% at the start to 48.7% on December 31.
Source: TokenInsight
The report noted that Binance had a healthy share in the first half of 2023, which fluctuated from highs of 60% on average to 52%.
These events pulled Binance back
However, critical events such as its end zero-fee trading program and enforcement actions by regulators have significantly reduced market dominance. The report highlighted that Binance’s stock fell below 50% within three months of the regulatory action.
Recall that Binance has been on the receiving end of relentless regulatory pressure in the US, with cases of rule violations from both its spot and derivatives trading operations.
At the end of last year, another major event shook Binance: the departure of charismatic CEO Changpeng Zhao (CZ). After this, the stock exchange’s market share fell by 32%.
However, the FUD gradually subsided and by the end of the year the main trading platform rose to 48%.
Despite the losses, Binance maintained its dominance in both the spot and derivatives markets, analyzed independently. While it had a 55% market share in spot trading, its market share in derivatives was 53.7%.
Source: TokenInsight
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Big winners in 2023
Notably, OKX and Bybit took the second and third positions in total foreign exchange market share, with a breakdown of 16.1% and 12.3% respectively.
Both CEXs also posted the biggest gains, increasing their market share by 4.3% and 2.2% respectively.
