According to a report released by digital asset data provider CCData on Oct. 3, Binance’s market dominance has declined significantly. Its spot market share has fallen to 27%, the lowest level since January 2021, according to the report.
It stated that in September, Binance’s spot trading volume dropped by 22.9% to $344 billion, marking the lowest monthly spot volume on the exchange since November 2023. Nevertheless, Binance is still the leader in this metric.
Binance’s Loss, Crypto.com’s Gain
Additionally, Binance derivatives market share has dropped to 40.7%, its lowest since September 2020, while overall market share (spot and derivatives) decreased to 36.6%, which is also the lowest since September 2020. However, it has remained the largest derivatives exchange by monthly volume in September, trading $1.25 trillion, down 20.6% from August.
Binance, Upbit, and OKX have lost the most market share, declining by 5.3%, 4.6%, and 4.0% to 27.0%, 2.5%, and 3.9%, respectively. Binance’s loss has been Crypto.com’s gain. Spot and derivatives volumes increased by over 40% each, and its combined market share surged to 11%, making it the fourth-largest centralized trading platform by volume.
According to CoinGecko, Crypto.com is currently second to Binance in terms of daily spot trading volume, with around $8 billion, and Bybit is third with $5 billion. The research also revealed that Crypto.com and Coinbase were the best-performing derivatives exchanges based on month-on-month change, recording increases of 42.8% and 7.05% to $149 billion and $1.88 billion, respectively.
Bybit maintained its third position with 15.3% of the derivatives market share, while OKX held 18.4%. Additionally, crypto derivatives accounted for just over 70% of the entire crypto market volume.
Slow Septembers
The report did acknowledge that September is usually slower in terms of trading volumes.
“The decline in monthly trading volume coincides with the last month of the seasonality period which is often accompanied by low trading activity.”
Octobers are generally bullish but crypto markets have declined by 8%, or around $200 billion, already since the beginning of this month. Nevertheless, the research indicates a shift in market share from established players like Binance towards emerging exchanges like Crypto.com, potentially signaling changing preferences among crypto traders.
Final Thoughts
The recent decline in Binance’s market dominance, as highlighted in the CCData report, reflects shifting dynamics within the cryptocurrency trading landscape. With Binance’s spot trading volume falling to its lowest level since January 2021 and its derivatives market share similarly dwindling, it’s clear that traders are diversifying across platforms.
The emergence of exchanges like Crypto.com, which has seen a significant surge in both spot and derivatives volumes, suggests that users may be seeking alternatives due to a variety of factors—perhaps regulatory pressures on Binance or better incentives on newer platforms. This transition could reshape the competitive landscape, especially as Crypto.com has now claimed a sizable 11% of the total market.
This shift could also indicate evolving trader preferences or dissatisfaction with the larger, established platforms. While Binance still leads in terms of overall volume, the continued rise of competitors like Crypto.com and Bybit signals a growing willingness among traders to explore new exchanges, potentially attracted by better fees, features, or localized services.
With the report noting that September is typically a slow trading month, the real test will come in the following months, especially if October’s historically bullish trends hold. However, Binance’s declining share, paired with Crypto.com’s rapid growth, shows how quickly market dynamics can change in the fast-paced crypto space.
Article Source: CryptoPotato
