Competitors Challenge Binance's Dominance – CryptoMode
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Competitors Challenge Binance’s Dominance
Bybit's share of non-US Bitcoin trading is up from 2% to 9.3%, while OKX now accounts for 7.3% of BTC trading versus 3% previously.
Binance’s grip on Bitcoin (BTC) trading outside the United States is waning as crypto exchanges capture a larger chunk of its global trading volume due to rapid expansion and changing regulations.
In a recent report from Bloomberg citing data from crypto research firm — Kaiko, Binance saw a decrease in the percentage of BTC trading on its platform from 81.3% to 55.3%. Moreover, the trading of alternative cryptocurrencies, or altcoins, declined from 58% to 50.5%.
Analysts at Kaiko linked these changes to Binance’s decision to end a promotion that waived trading costs. Moreover, the analysts observed a surge in trading volumes on offshore markets, with most of these trading activities happening on smaller exchanges.
Shifting Crypto Market Dynamics
Kaiko analysts believe the cryptocurrency landscape shifted recently, with platforms like Bybit and OKX significantly advancing in Asia. Moreover, the analysts cited Binance’s legal challenges as a factor.
The legal tussle with US regulators involved the company and its co-founder, Changpeng Zhao, who admitted to violating US anti-money laundering and sanctions laws. According to Kaiko data, Bybit‘s share of non-US Bitcoin trading has increased from 2% to 9.3% over the past year.
OKX has recorded an almost similar increase in market share, now accounting for 7.3% versus 3% previously. Meanwhile, Binance is trying to rebuild its reputation after its troubles, particularly with US regulators.
Exchanges’ 2023 Market Share. | Source: Bloomberg
Exchanges’ 2024 Market Share. | Source: Bloomberg
Under the leadership of former Singaporean regulator Richard Teng, the exchange has strengthened its token listing requirements and established a board of directors to oversee its day-to-day operations. The cryptocurrency sector has experienced exponential growth, boosted by Bitcoin’s remarkable price surge, with the token’s value quadrupling since the start of 2023. Following a tumultuous 2022, Bitcoin hit an all-time high of $73,798 last month.
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