Despite maintaining its position as the largest cryptocurrency exchange in the world, Binance has experienced a significant decline in market share over the past few months. As a result of Binance losing market share, some other exchanges are benefiting from this situation.
According to Bloomberg, Binance’s market share has decreased from 65.9% in January to 56.4% in May, and ultimately to 55.9% in June 2023. Additionally, according to data research firm Kaiko, Binance’s market share is nearing its yearly low. In August 2022, it reached its lowest point at 53.7%.
Alongside Binance, the market share of the second-largest exchange, Coinbase, has also decreased from 7.6% to 6.8%, partly due to legal hurdles. While Binance and Coinbase have lost market share, some other exchanges have benefited. Specifically, the market share of OKX has increased from 5% in January to 6.8% in June. Similarly, Kraken’s market share has risen from 2.4% to 3.9%, and Huobi’s from 1% to 2.9%. The remaining share of 16 other exchanges has surged from 9.4% to 16%.
Regulatory scrutiny could be a key factor contributing to the decline in Binance’s market share.
However, despite the challenges, Binance remains the dominant cryptocurrency exchange. According to data from Nansen, Binance has over $55 billion in assets.