Binance Retains CEX Lead With 43.7% Market Share

Examining Binance and Its Contenders

The study analyzed data from January 1, 2023, to December 31, 2023, focusing on the top 10 centralized exchanges by spot trading volume. Apart from Binance, the top contenders included Upbit, OKX, Bybit, Coinbase, MEXC, Gate, HTX, KuCoin, and Bitget.

Upbit secured its position as the second-largest CEX with a 9.3% market share, experiencing a modest 0.3% growth rate. The exchange recorded a spot trading volume of $90.7 billion in December 2023, continuing its steady performance from the previous month.

OKX emerged as the third-largest exchange, holding an 8.9% market share and a trading volume of $86.8 billion in December 2023. Binance, despite facing regulatory challenges throughout 2023, led the market with a 52.6% market share for the entire year, generating a staggering $3.8 trillion in trading volume.

According to the report, Binance’s market share had gradually declined over the year, starting at 63.5% in January and dropping to 43.7% in December. The regulatory pressure peaked in November, leading to Binance agreeing to a $4.3 billion fine to settle with the Department of Justice (DoJ) and the Commodity Futures Trading Commission (CTFC). Consequently, Changpeng Zhao (CZ) stepped down as the CEO of the exchange.

In the final quarter of 2023, all top 10 centralized exchanges witnessed growth, with MEXC leading the pack by registering an extraordinary 203.7% increase in trading volume ($90.4 billion). This was followed by Bybit, with a growth rate of 162.1% ($107.5 billion), and KuCoin, which grew by 161.2% ($49.2 billion).

KuCoin made a comeback in Q4, reclaiming its spot in the Top 10 after losing it in Q3, edging out Kraken. As of the end of December, KuCoin secured the ninth position with a market share of 3.3%. However, the dynamic landscape of CEX continues to witness fluctuations, with each platform navigating regulatory challenges, market trends, and user demands to secure its standing in the crypto arena.