Binance's Market Share Falls to 4-Year Low

The world's largest cryptocurrency exchange Binance is facing a threat to its dominance as its trading volume declines compared to its rivals.

According to a new report released by CCData, Binance's market share in terms of trading volume has fallen to a 4-year low, back to September 2020.

Specifically, Binance accounted for 36.6% of the total crypto trading volume of exchanges in September 2024, with spot and futures trading volumes falling by 23% and 21% respectively in the past month. Currently, the exchange's spot and futures market shares are 27% and 40.7% respectively.

However, Binance still retains its position as the world's largest cryptocurrency exchange with 36.59% market share, the lowest level since September 2020. Following that are competitors including OKX (14.1%), Bybit (13.57%), Bitget (11%), Crypto.com (6.48%),…

In September, Crypto.com was the exchange that recorded surprising growth when it gained 4.3% of the spot market share and 2% of the futures market share, increasing 40.2% of spot trading volume and 42.8% of futures trading volume. The platform's market share also increased by 10.5% compared to 2023.

The total spot trading volume of the entire market last month was 1.27 trillion USD, down 17.2%, while futures volume decreased 17% to 3.07 trillion USD. The reason for this may stem from investors' reluctance to trade in September, a period when the crypto market often has no positive fluctuations, combined with macro information such as the Fed's interest rate adjustment.

Binance may also be aware that its position is being fiercely threatened by competitors, leading to new moves to attract users in recent times such as listing a series of tap-to-earn tokens of the TON ecosystem including Doghouse (DOGS), Catizen (CATI), Hamster Kombat (HMSTR); listing low-cap memecoins including Neiro, BabyDoge and Turbo; implementing the Pre-Market trading feature; ...

The exchange also received positive news in September when former CEO Changpeng Zhao finished his 4-month prison sentence. However, current CEO of Binance, Mr. Richard Teng, affirmed that CZ will not return to hold a management position at the exchange, but will still be the largest shareholder and hold majority ownership of the company.