CCData
Last week’s data shows that the cryptocurrency exchange Binance, after a long period of 8 months of accusations and lawsuits, has lost 70% of its monthly trading volume and its market share has fallen to 30%. On the other hand, OKX and Bybit, as the runners-up, have experienced rapid growth in the past year, with a combined market share in both spot and derivative markets reaching a historical high.
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Binance’s trading volume has lost 70% in a year
OKX and Bybit catching up quickly
Executive departures and CZ stepping down, what’s next for Binance?
Since March and June of this year, Binance has been involved in lawsuits with the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), accusing the exchange of violating anti-money laundering regulations, operating an illegal derivatives exchange, and illegally providing its services to U.S. citizens. According to Coindesk citing CCData, Binance’s spot market share has experienced an unprecedented decline this year, dropping from 55% at the beginning of the year to 30.1% in December. The monthly trading volume in the spot market has decreased from nearly $500 billion in January to $114 billion in September, a loss of over 70%.
Similar data also aligns with Nansen’s observation of capital outflows from Binance after CZ stepped down. It is reported that after reaching a settlement with the U.S. Department of Justice, the company’s assets have depreciated by $1 billion.
However, CCData also revealed that despite the continuous decline in Binance’s market share, it remains the largest centralized exchange (CEX) and is far ahead of its competitors in terms of scale.
In addition, OKX and Bybit, as the second and third runners-up, have achieved significant market growth this year. The market share of OKX has increased from only 4% at the beginning of the year to 8% in December.
Data shows that in terms of overall spot and derivative trading volume, the monthly trading volume of almost all exchanges has shown a gradual increase in the past 3 months. However, Binance’s market share has declined from 60% to 42% this year, while OKX has grown from 9% to 20.2%, ranking second. Bybit, in third place, holds a market share of 11.94%, which means their combined market share exceeds 32%, reaching a historical high in total market share.
CCData commented on this, stating that the recent lawsuits against Binance have come to an end, although Coinbase’s SEC case is still ongoing. The impressive data of OKX and Bybit highlights the response and changes in the CEX market to the aforementioned events, especially the evident increase in demand after September.
Previously, Binance and its former CEO CZ reached a settlement with the U.S. Commodity Futures Trading Commission (CFTC) by paying $4.3 billion, and separately reached settlements with the U.S. Department of Justice and the Treasury Department.
In addition, Binance has faced the departure of more than 10 executives, including regional heads, a chief strategy officer, and multiple compliance and legal advisors. This was seen as a warning and undoubtedly had an impact on Binance’s personnel structure and stability.
Binance (幣安)
Bybit
CCData
CFTC
OKX
SEC
Zhao Changpeng (CZ)
Further reading
CFTC Chairman Rostin Behnam Interview | Clarifying the Harmonious Relationship with the SEC, CZ to bear criminal responsibility
CFTC: Binance settlement may represent the peak of cryptocurrency regulation, the U.S. has “intensified” disciplinary actions against Binance