Binance's Crypto Trading Market Share Dips to 30% in 2023

• Binance's Spot Market Share Faces Gradual Decline
• Detailed Analysis by CCData
• Settlement of Legal Charges
• Executive Departures from Binance
• Current Status of Binance
• Combined Spot and Derivatives Trading

Binance's Spot Market Share Faces Gradual Decline

Binance, tagged as the world's most substantial cryptocurrency exchange by market volume, has experienced a consistent decrease in its spot market share. This comes on the heels of various charges brought forward by regulators, which have occurred over the year and led to the stepping down of founder and CEO Changpeng CZ Zhao.

Detailed Analysis by CCData

Figures released by CCData indicate that the market share of Binance for December was a mere 30.1%. This figure is significantly lower than the 55% recorded at the beginning of the year. The monthly spot volumes of the exchange saw a sizeable decline of over 70% from $474 billion to $114 billion, from January to September. It is worth noting that Binance has started to experience an increase in monthly trading volumes since September, even while its market share continues to decline.

Settlement of Legal Charges

In November, Binance, along with its previous CEO CZ, consented to pay almost $3 billion in order to settle a lawsuit filed by the U.S. Commodity Futures Trading Commission. This resolution occurred concurrently with separate settlements involving the U.S. Department of Justice and the Treasury Department.

Executive Departures from Binance

Beyond the departure of its CEO, Binance also bore witness to several executive exits over the year. These include the likes of Chief Strategy Officer Patrick Hillmann, Senior Director of Investigations Matthew Price, and U.K. chief Jonathan Farnell.

Current Status of Binance

In spite of the decline in Binance's spot trading market share over the year, it still maintains its position as the largest cryptocurrency exchange by a considerable margin. The second spot is held by Seychelles-based OKX, which has seen its market share increase to 8% in December, up from around 4% at the beginning of the year, as per CCData.

Combined Spot and Derivatives Trading

The scenario is quite similar when examining combined spot and derivatives trading. Binance recorded a drop in market share to 42% from 60%, while OKX's share grew to 21% from 9%.

Edited by Jonathan Stoker