Dramatic Drop in Binance Spot Trading Market Share from 55 to 30 in 2023 Due to Significant Customer Losses

CoinDesk cited data from CCData in a report stating that the market share of Binance’s spot market has dropped from 55% at the beginning of the year to 30.1%.
From January to September, the monthly spot trading volume of the exchange has decreased by over 70%, falling from $474 billion to $114 billion. CCData also noted that despite the continuous decline in market share, Binance’s monthly trading volume has started to increase since September.
The company and its former CEO, Zhao Changpeng, agreed to pay over $4 billion in settlement in November to resolve charges from the CFTC, the US Department of Justice, and the Treasury Department. Zhao Changpeng also announced his resignation due to this matter, and in addition to the CEO’s departure, the exchange has seen several high-level executives resign this year, including COO Helen Hai, Chief Strategy Officer Patrick Hillmann, and General Counsel Han Ng, among 14 others.
Despite the decline in Binance’s spot trading market share over the past year, it remains the largest cryptocurrency exchange globally with a significant lead. According to CCData, following Binance’s 30% market share is the OKX exchange, whose market share has grown from about 4% at the beginning of the year to 8% in December.
On the other hand, when combining spot and derivatives trading data, a similar trend is observed, with Binance’s market share dropping from 60% to 42% and OKX’s market share increasing from 9% to 21%.