Binance Extends Market Share for Fourth Consecutive Month

The exchange continues to dominate, despite facing increased regulatory scrutiny, a report by CryptoCompare shows.

AccessTimeIconMar 8, 2023 at 11:00 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Binance, the world’s largest crypto exchange by trading volume, has extended its spot market share across crypto exchanges for a fourth consecutive month.

The exchange market share increased from 59.4% in January to 61.8% in February, according to a report from crypto market data provider CryptoCompare. Binance had a 13.7% increase in its spot volumes to $504 billion, an all-time high market share for the exchange.

This comes as regulators in the U.S. and beyond have ratcheted up their scrutiny of the exchange in recent months. Most recently, a U.S. Securities and Exchange (SEC) official said that agency staff believe Binance.US may be operating an unregistered securities exchange in the U.S., an assertion to which Binance.US objected. Binance is a corporate entity that operates in US through Binance.US.

“Despite the recent criticism the exchange has received, market participants continue to take shelter on Binance under the premise that the largest exchange is seen as one of the safer trading venues,” said Jacob Joseph, a research analyst at CryptoCompare, in an interview with CoinDesk.

Joseph also attributes the exchange’s dominance to the vast amount of liquidity available on Binance, which means reduced slippage costs and spreads, an attractive benefit for traders. “It is one of the exchanges with the most trading pairs and services available,” Joseph said.

Coinbase is second to Binance in volume, trading $39.9 billion (down 29% from the previous month), followed by Kraken, which traded $19.3 billion (down 11%.)

(CryptoCompare)
(CryptoCompare)

In February, Binance’s market share across derivative exchanges also grew, climbing to 62.9%, its highest-ever recorded monthly market share, according to the report. Exchanges OKX and Bybit followed with 14% and 13.3% market share, respectively.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Lyllah Ledesma

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.