November 7, 2023 – The “2023 CEX Market Report” published by 0xScope on November 6, 2023, sheds light on the evolving landscape of centralized exchanges (CEXs) over the past year, indicating a notable shift in market dynamics. The report emphasizes the increasing influence of second-tier exchanges, specifically OKX and Upbit, challenging Binance’s previously unchallenged market dominance.
Binance, long hailed as the dominant player in the CEX arena, has seen its hold on the market loosen, with its trading volume and key indicators experiencing a decline of approximately 10%. Despite still maintaining more than half of the market share, Binance’s grip has dwindled from 54.6% in October 2022 to 51.2%.
The competition in spot trading has intensified, and Binance’s share has receded from 62% to 52.5% over the past year. Upbit, in particular, has made significant strides, surging from a 5% to a 15.3% share, largely propelled by its active presence in the vibrant South Korean market.
Binance continues to lead the derivatives segment, maintaining a share of around 45%, albeit down from its 50.9% share. Notably, OKX has emerged as a formidable competitor, notably increasing its share in derivatives from 10% to 15%, signifying a broader transformation within the CEX ecosystem.
An analysis of on-chain data and asset values reveals that established exchanges such as Binance, Coinbase, and Bitfinex collectively manage over 80% of the market’s exchange funds. However, a slight 5% decline in Binance’s asset value share indicates a redistribution of market trust toward competitors like OKX and Coinbase.
Binance and Coinbase together command more than 60% of the CEX market’s deposit addresses. However, the report highlights that the monthly increase in new deposit addresses has been dwindling, underscoring the challenges in acquiring new customers and expanding their user base.
The “2023 CEX Market Report” reflects the dynamic nature of the cryptocurrency exchange landscape, where evolving market forces and emerging players are contributing to a shift in the once-unquestioned dominance of major exchanges. The growth of OKX and Upbit, alongside the competitive landscape in spot trading and derivatives, indicates a potential transformation in the CEX ecosystem, prompting incumbent players to adapt and innovate to maintain their positions in the evolving market.
