The market share of cryptocurrency exchange giant Binance continued to rise after the collapse of its competitor FTX, reaching 66.7% in 2022. However, a report from CCData yesterday (2) showed that Binance's market share had fallen to 46.3% in April, the lowest level in nearly 8 months.
The trading volume of centralized exchanges has shrunk, and Binance's market share has continued to decline
CCData's report first analyzed the current status of the entire CEX (centralized exchange) market. In April 2023 alone, CEX's spot and derivatives trading volume fell by 27.9% to US$277 million, marking the first month-on-month decline in trading volume this year, hitting the lowest level since December 2022. During the same period, mainstream cryptocurrency assets, led by Bitcoin, continued to fluctuate in a range below key resistance levels.
Against the backdrop of the sluggish market, the current situation of Binance, the leader in the exchange field, is not optimistic. In April alone, Binance's spot trading volume fell by as much as 48.1% to US$287 billion, the second lowest monthly trading volume since 2021. This downward trend is also reflected in market share. Binance's market share has fallen for two consecutive months to 46.3%, the lowest market share since October 2022.
Despite this, CCData pointed out that Binance's leading position is still a long way from being threatened, and the second largest exchanges Coinbase and OKX had a spot trading volume market share of 5.6% and 5.39% in April.
In the derivatives market, Binance’s total trading volume in April was $1.32 trillion, ranking first with a market share of 61.4%. OKX and Bybit ranked second and third, with market shares of 15.0% and 14.6%, respectively.
Binance: The decline is due to the end of zero-fee BTC trading pairs
Binance’s trading volume has declined significantly for two consecutive months as the exchange faces tougher business competition, greater scrutiny of its activities by U.S. regulators, and the end of its zero-fee promotion.
A representative of Binance also responded to Cointelegraph about the decline in market share, saying that the decline in market share was expected and pointed out that financial performance is the indicator that Binance cares most about:
We anticipate that once we end our zero-fee promotion for most BTC trading pairs, market share will decline. This is not a concern for us and we will continue to deliver strong financial performance.