The 2023 CEX Market Report by 0xScope, revealed on November 6, 2023, supplies a complete overview of the altering landscapes throughout 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 in the marketplace 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 available in the market has been important, 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 going through 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 information and asset values reveals that established exchanges like Binance, Coinbase, and Bitfinex collectively maintain over 80% of market change funds. Nonetheless, a mere 5% decline in Binance’s asset worth share signifies a redistribution of market belief in direction of rivals like OKX and Coinbase.
Binance and Coinbase collectively account for over 60% of the CEX market’s deposit addresses, however the month-to-month improve in new deposit addresses has been waning, showcasing a problem in new buyer acquisition.
Analyzing internet and social media information, Binance has seen a dip in web site visitors and Twitter follower share, regardless of a web improve in followers. In distinction, OKX has witnessed its Twitter followers almost triple, suggesting an aggressive and profitable progress in market visibility.
Notably, the report emphasizes the shortage of a direct correlation between internet presence and change efficiency. It additionally acknowledges potential discrepancies as a result of opaqueness in exchanges’ on-chain addresses.
This report serves as a vital barometer for understanding CEX dynamics, highlighting that whereas Binance stays on the forefront, it’s going through a big problem from rising gamers reshaping the market share equation.
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