Binance's Market Dominance Challenged as OKX and Upbit Gain Ground

blockchain.news:

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,