The 2023 CEX Market Report by 0xScope, published on November 6, 2023, provides a comprehensive overview of the changing landscapes within the centralized exchanges (CEXs) over the past year. It highlights the shifting dynamics and the rise of second-tier exchanges like OKX and Upbit challenging Binance’s previously uncontested dominance.
Binance’s grip on the market has loosened, with its trading volume and other indicators shrinking by approximately 10%. Despite holding more than half of the market’s share at 51.2%, there’s been a noticeable decrease from its 54.6% share in October 2022.
Spot trading competition has intensified, with Binance’s share dropping from 62% to 52.5% over the year. Upbit’s ascent in the market has been significant, leaping from a 5% to a 15.3% share, largely propelled by the vibrant South Korean market.
While Binance still leads in derivatives with a share of around 45%, down from 50.9%, it is facing rising competition. OKX, in particular, has marked its territory, climbing from a 10% to a 15% share in derivatives, signifying a broader shift in the CEX ecosystem.
An examination of on-chain data and asset values shows that established exchanges like Binance, Coinbase, and Bitfinex collectively hold over 80% of market exchange funds. However, a mere 5% decline in Binance’s asset value share indicates a redistribution of market trust towards competitors like OKX and Coinbase.
Binance and Coinbase collectively account for over 60% of the CEX market’s deposit addresses, but the monthly increase in new deposit addresses has been waning, showcasing a challenge in new customer acquisition.
Analyzing web and social media data, Binance has seen a dip in website traffic and Twitter follower share, despite a net increase in followers. In contrast, OKX has witnessed its Twitter followers nearly triple, suggesting an aggressive and successful growth in market visibility.
Notably, the report emphasizes the lack of a direct correlation between web presence and exchange performance. It also acknowledges potential discrepancies due to the opaqueness in exchanges’ on-chain addresses.
This report serves as a critical barometer for understanding CEX dynamics, highlighting that while Binance remains at the forefront, it is facing a significant challenge from emerging players reshaping the market share equation.
Image source: Shutterstock
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://Blockchain.News/news/binances-market-dominance-challenged-as-okx-and-upbit-gain-ground
- :has
- :is
- :where
- 15%
- 2%
- 2022
- 2023
- 50
- 51
- 54
- a
- Account
- acquisition
- addresses
- aggressive
- also
- an
- and
- approximately
- around
- AS
- ascent
- asset
- At
- based
- been
- between
- binance
- Bitcoin
- Bitfinex
- blockchain
- broader
- but
- by
- california
- CAN
- centralized
- Centralized Exchanges
- CEX
- CEXs
- challenge
- challenged
- challenging
- changing
- Climbing
- coinbase
- collectively
- competition
- competitors
- comprehensive
- Consumers
- contrast
- Correlation
- critical
- cryptocurrencies
- Currency
- customer
- data
- Decline
- decrease
- deposit
- Derivatives
- Despite
- digital
- digital currency
- digital currency exchange
- Dip
- direct
- Dominance
- down
- Dropping
- due
- dynamics
- ecosystem
- emerging
- emphasizes
- established
- exchange
- Exchanges
- facing
- followers
- For
- forefront
- from
- funds
- Gain
- Ground
- Growth
- Half
- highlighting
- highlights
- hold
- holding
- However
- HTTPS
- in
- Increase
- indicates
- Indicators
- IT
- ITS
- jpg
- Korean
- Lack
- largely
- Leads
- like
- marked
- Market
- Market Dominance
- Market Exchange
- Market Report
- market share
- Media
- Merchants
- mere
- monthly
- more
- nearly
- net
- New
- news
- November
- october
- of
- OKX
- on
- On-Chain
- on-chain data
- opaqueness
- Other
- over
- overview
- particular
- past
- performance
- plato
- Plato Data Intelligence
- PlatoData
- players
- potential
- presence
- previously
- propelled
- provides
- published
- remains
- report
- reshaping
- Rise
- rising
- s
- seen
- serves
- Share
- shift
- SHIFTING
- showcasing
- Shows
- significant
- Social
- social media
- Source
- South
- south korean
- Still
- successful
- territory
- than
- that
- The
- There.
- to
- towards
- Trading
- trading volume
- traffic
- transact
- Triple
- Trust
- understanding
- upbit
- value
- Values
- vibrant
- visibility
- volume
- web
- Website
- while
- with
- within
- witnessed
- year
- zephyrnet