Binance Breaks Record with $427 Billion Spot Trading Volume in 2023
According to a recent CoinGecko report, Binance, the largest centralized exchange (CEX) in the world, has maintained its market leadership position in 2023. Despite facing regulatory scrutiny and undergoing significant leadership changes, Binance captured a market share of 43.7% and witnessed a month-on-month increase of 37.5%, with its spot trading volume reaching $427.1 billion in December 2023.
CoinGecko’s report states that Binance began the year with a commanding 63.5% market share but experienced a gradual decline throughout the year, settling at 43.7% in December. Despite the decline in market share, Binance still dominated the market with 52.6% of the total spot trading volume, generating an impressive $3.8 trillion in trading volume throughout the year.
Throughout 2023, Binance faced significant regulatory pressure and agreed to pay a $4.3 billion fine to the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CTFC) for alleged financial breaches. As part of the settlement, the CEO of Binance, Changpeng Zhao (CZ), stepped down, and Richard Teng took over as the company’s head. CZ remains restricted from traveling outside the US jurisdiction as the legal battle continues.
Upbit, South Korea’s largest cryptocurrency exchange, maintained its position as the second-largest centralized exchange in 2023, with a 9.5% market share and $687.0 billion in spot trading volume. Upbit benefited from the Kimchi Premium, resulting in strong local demand and premium prices for crypto assets. In December, Upbit reached a monthly spot trading volume of $90.7 billion, reflecting a 93.5% quarter-on-quarter increase.
OKX secured the third position among centralized exchanges in 2023, with a 6.7% market share and $485.9 billion in trading volume. The exchange’s market share steadily increased throughout the year, starting at 5.1% in January and ending at 8.9% in December. In Q4, OKX’s trading volume reached $177.9 billion, showing a significant gain of 151.6% quarter-on-quarter.
Among the top 10 centralized exchanges, MEXC recorded the highest growth in Q4 2023, with trading volume surging 203.7% to $90.4 billion. Bybit followed closely with a growth rate of 162.1% ($107.5 billion), while KuCoin experienced a growth rate of 161.2% ($49.2 billion). KuCoin regained its spot in the Top 10 in Q4 after briefly losing it in Q3, with a market share of 3.3% by the end of December.
The price of Binance Coin (BNB) has successfully stayed above the $300 threshold, currently trading at $304. This represents a 1.8% decrease in price over the past 24 hours.
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