DEXs Rise as Smaller Exchanges Gain Ground in Competitive Crypto Market
A recent report shared with Cointelegraph reveals that major cryptocurrency exchanges, including Binance and Crypto.com, are losing market share to smaller competitors as decentralized exchanges (DEXs) gain popularity.
The report highlights how smaller exchanges have taken advantage of these developments, with Bybit surging from the seventh spot last year, with a 3.2% market share, to second place with 8.51%.
OKX has climbed slightly from 5.4% to 6.38%, becoming the third-largest spot exchange. Bitget also saw its market share rise from 8.2% to 12.7%, driven by initiatives like partnerships with high-profile athletes, including Lionel Messi, and a focus on user education.
Crypto.com has faced similar challenges, with its market share plummeting from 15% in October 2023 to below 4% by February 2024. This decline coincided with an increase in market shares for both Binance and Upbit.
Meanwhile, decentralized exchanges are quickly climbing the ladder. DEX trading volumes have surged, surpassing the $250 billion mark monthly in both March and June for the first time since December 2021.
As of October 17, DEX spot trading accounted for 13.6% of the total spot trading volume on centralized exchanges, illustrating a growing trend toward decentralized platforms.
Despite these shifts, centralized exchanges (CEXs) continue to dominate overall trading volumes. The 22 largest CEXs have processed a cumulative $54 trillion in trading volume over the past year, with Binance alone accounting for over $22.5 trillion.
While Binance’s market share has fluctuated throughout 2024, remaining above 40% for most of the year, the report suggests that smaller competitors will face challenges in capturing additional market share if Binance maintains its current momentum.
