A recent report reveals that centralized exchanges like Binance and Crypto.com are losing market share to smaller rivals and decentralized exchanges that are rapidly gaining traction.

Decline of Binance and Crypto.com

According to the 0XScope research, Binance's spot trading market share dropped from 52.5% in October 2023 to 39.54% in October 2024, indicating a 13% decline year on year. Binance's crypto derivatives market share also decreased from 50.9% to 42.5% over the same period. Crypto.com experienced a sharp decline from 15% market share in October 2023 to less than 4% by February 2024.

Growth of Smaller Exchanges

Bybit, OKX, and Bitget have capitalized on Binance's decline to grow their influence. Bybit increased its market share from 3.2% to 8.51%, becoming the second largest exchange after Binance. OKX raised its spot market share from 5.4% to 6.38%, ranking third. According to Bitget CEO Gracy Chen, Bitget increased its market share from 8.2% to 12.7% through educational efforts, strategic partnerships, and collaborations with high-profile athletes like Lionel Messi and teams like Juventus.

Impact of Decentralized Exchanges

Decentralized exchanges are posing a significant threat to their centralized counterparts, with monthly DEX trading volumes exceeding $250 billion in both March and June 2024 for the first time since December 2021. As of October 17, DEX spot volumes amounted to 13.6% of CEX volumes, meaning that for every $1 billion traded on CEXs, $136 million was traded on DEXs.

The shifts in market share reflect increasing competition between centralized and decentralized platforms, signaling a change in trader preference towards decentralized solutions and strengthening the position of new market players.