The 2023 CEX Market Report by 0xScope, printed on November 6, 2023, supplies a complete overview of the altering landscapes inside the centralized exchanges (CEXs) over the previous 12 months. It highlights the shifting dynamics and the rise of second-tier exchanges like OKX and Upbit difficult Binance’s beforehand uncontested dominance.
Binance’s grip available on the market has loosened, with its buying and selling quantity and different indicators shrinking by roughly 10%. Regardless of holding greater than half of the market’s share at 51.2%, there’s been a noticeable lower from its 54.6% share in October 2022.
Spot buying and selling competitors has intensified, with Binance’s share dropping from 62% to 52.5% over the 12 months. Upbit’s ascent out there has been vital, leaping from a 5% to a 15.3% share, largely propelled by the colourful South Korean market.
Whereas Binance nonetheless leads in derivatives with a share of round 45%, down from 50.9%, it’s dealing with rising competitors. OKX, specifically, has marked its territory, climbing from a ten% to a 15% share in derivatives, signifying a broader shift within the CEX ecosystem.
An examination of on-chain knowledge and asset values exhibits that established exchanges like Binance, Coinbase, and Bitfinex collectively maintain over 80% of market trade funds. Nevertheless, a mere 5% decline in Binance’s asset worth share signifies a redistribution of market belief in the direction of opponents like OKX and Coinbase.
Binance and Coinbase collectively account for over 60% of the CEX market’s deposit addresses, however the month-to-month enhance in new deposit addresses has been waning, showcasing a problem in new buyer acquisition.
Analyzing internet and social media knowledge, Binance has seen a dip in web site visitors and Twitter follower share, regardless of a web enhance in followers. In distinction, OKX has witnessed its Twitter followers practically triple, suggesting an aggressive and profitable development in market visibility.
Notably, the report emphasizes the shortage of a direct correlation between internet presence and trade efficiency. It additionally acknowledges potential discrepancies as a result of opaqueness in exchanges’ on-chain addresses.
This report serves as a crucial barometer for understanding CEX dynamics, highlighting that whereas Binance stays on the forefront, it’s dealing with a major problem from rising gamers reshaping the market share equation.
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