According to The Block, the cryptocurrency spot trading market is increasingly concentrated, with the top two encrypted trading platforms accounting for more than 50% of the entire market, according to data from blockchain analysis firm Kaiko.
Blockchain analysis company Kaiko has revealed that the cryptocurrency spot trading market has become more concentrated, with the top two encrypted trading platforms holding more than 50% of the market share, a slight increase from 2020.
Binance, the largest trading platform by volume, has seen its spot market share rise from 24% in 2020 to over 50% currently. However, data from The Block indicates that Binance's spot trading volumes have been declining over the past year. The exchange's spot market share could fall to its lowest level since last July, reaching 47.15%.
Kaiko predicts that this trend of market concentration may continue amidst a broader downturn in market activity, putting pressure on smaller exchanges. In contrast, both Binance and Coinbase have experienced drops in their spot market shares, with Binance's share declining from 64% to 50% this year and Coinbase's share falling from 8% to 5.5% over the same period.
