Despite facing regulatory challenges, Binance has retained its position in the industry, with only a marginal decrease in its market share, according to TokenInsight.
Binance experienced a 5% decline in market share, dropping from 54.2% to 48.7%. This shift followed the decision of Binance’s founder, Changpeng Zhao, to step down as CEO as part of a $4.3 billion settlement with the U.S. Department of Justice, according to recent research from TokenInsight.
Crypto exchanges market share | Source: TokenInsight
As per data, other cryptocurrency exchanges such as OKX and Bybit appeared to be significant gainers in the market, with OKX increasing by 4.3% in market share to 15.7%, while Bybit saw a rise of 2.2% up to 11.6%. Analysts added that despite Binance facing troubles with U.S. regulators last year, traders “do not seem to have lost confidence in centralized exchanges.”
“These events did not have a massive impact on the market landscape as the FTX collapse did in 2022. Traders still prefer the perceived safety of centralized exchanges.”
TokenInsight
In Q1 2023, decentralized exchanges — including Uniswap, PancakeSwap, Orca, and others — reached their peak market share at 2.98%. Meanwhile, Q1 was also the quarter with the largest transaction volume, analysts added. However, in the subsequent two quarters, both trading volume and market share gradually contracted. While there was a slight increase in both metrics in Q4, the overall proportion did not undergo significant changes, as per TokenInsight’s data.
Read more: Binance releases proof of reserves, showing 100% backed assets
Read the full article here