In absolute terms, Binance generated $3.8 trillion in trading volume for the entire year.
According to a recent report from CoinGecko, Binance, the world’s largest centralized exchange (CEX) by trading volume, maintained its leading market position in 2023.
Despite facing increased regulatory scrutiny and undergoing major leadership changes, Binance maintained a 43.7% market share and saw its spot trading volume increase to $427.1 billion in December 2023, representing a month-on-month (MoM) increase of 37.5%.
According to data from The Block, Binance led the charge in December, accounting for 39.3% of the month’s total volume, amounting to $432.7 billion. UPbit and OKX followed with 8.3% ($91.8 billion) and 8% ($87.5 billion) of volume, respectively.
December’s unexpected surge in cryptocurrency trading activity was attributed to the industry’s collective optimism surrounding the potential approval of spot bitcoin exchange-traded funds (ETFs).
Steven Zheng, director of research at The Block, noted that December, historically a slower month for cryptocurrency trading, saw unprecedented enthusiasm, due to the expected approval of bitcoin spot ETFs, which was effective on January 10, and the resurgence of a bull market.
Binance Trading Volume Reached $3.8 Trillion in 2023
According to CoinGecko’s report, Binance started the year with a dominant 63.5% market share, but saw a gradual decline throughout 2023, ending with a 43.7% market share in December. While Binance still dominated the market with 52.6% of total spot trading volume in 2023, the relative drop in the exchange’s market share was notable.
As previously reported, Binance faced significant regulatory pressure throughout 2023, culminating in a settlement agreement in November that required the exchange to pay a $4.3 billion fine to the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CTFC), for alleged financial violations.
As part of the deal, Binance CEO Changpeng Zhao (CZ) also agreed to resign. Richard Teng has taken on the role of director of the company, while CZ remains restricted from traveling outside of US jurisdiction while the legal battle plays out.
UPbit and OKX Follow Closely
UPbit, South Korea’s largest cryptocurrency exchange, managed to maintain its position as the second largest centralized exchange in 2023, with a 9.5% market share and $687 billion in spot trading volume for the year.
According to the report, UPbit benefited from the Kimchi Premium, resulting in strong local demand and premium prices for the crypto assets. The exchange’s monthly spot trading volume hit an annual high of $90.7 billion in December, with a quarter-on-quarter (QoQ) increase of 93.5%.
In contrast, OKX secured the third position among centralized exchanges in 2023, with a 6.7% market share and $485.9 billion in trading volume. Throughout the year, OKX saw a steady increase in its market share, starting with 5.1% in January and ending with 8.9% in December. The exchange’s trading volume in the fourth quarter reached $177.9 billion, reflecting a notable quarter-on-quarter gain of 151.6%.
Among the top 10 centralized exchanges, CoinGecko reports that MEXC recorded the highest growth in Q4 2023, with trading volume increasing 203.7% to $90.4 billion. Bybit followed closely with a growth rate of 162.1% ($107.5 billion), while KuCoin saw a growth rate of 161.2% ($49.2 billion). KuCoin regained its place in the Top 10 in Q4 after briefly losing it in Q3, with a 3.3% market share at the end of December.
Binance Coin (BNB) has successfully maintained its position above the $300 threshold, with the current trading price at $304. This represents a 1.8% decrease in price over the last 24 hours.
By Leonardo Perez
