February 5, 2024

Binance Achieves New Milestone: Spot Trading Volume Soars to $427 Billion

In a recent report by CoinGecko, Binance, the world's foremost centralized exchange (CEX) by trading volume, continued to demonstrate its dominance in the market throughout 2023.

Despite grappling with heightened regulatory scrutiny and navigating significant leadership changes, Binance not only retained its market leadership but also witnessed a remarkable 37.5% month-on-month (MoM) increase in spot trading volume, reaching an impressive $427.1 billion in December 2023.

CoinGecko's findings reveal that Binance commenced the year with an authoritative 63.5% market share, experiencing a gradual decline throughout the year and concluding December with a still substantial 43.7% market share. Although the exchange's relative market share declined, Binance maintained its dominance, accounting for 52.6% of the total spot trading volume in 2023, equivalent to a staggering $3.8 trillion in trading volume.

Throughout 2023, Binance faced substantial regulatory pressure, culminating in a settlement agreement in November. The settlement required Binance to pay a $4.3 billion fine to the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) for alleged financial breaches. As part of the resolution, Binance's CEO, Changpeng Zhao (CZ), agreed to step down. The helm was then assumed by Richard Teng, while CZ remains restricted from traveling outside the United States as legal proceedings unfold.

Meanwhile, Upbit, South Korea's largest cryptocurrency exchange, maintained its position as the second-largest centralized exchange in 2023, boasting a 9.5% market share and $687.0 billion in spot trading volume for the year. The report attributes Upbit's success to the Kimchi Premium, driving local demand and premium prices for crypto assets. The exchange recorded a yearly high in monthly spot trading volume, reaching $90.7 billion in December, marking a substantial 93.5% quarter-on-quarter (QoQ) increase.

OKX secured the third position among centralized exchanges in 2023, holding a 6.7% market share and recording $485.9 billion in trading volume. Throughout the year, OKX witnessed a steady increase in market share, starting at 5.1% in January and concluding at 8.9% in December. The exchange's trading volume in Q4 soared to $177.9 billion, reflecting a notable 151.6% QoQ gain.

Among the top 10 centralized exchanges, MEXC recorded the highest growth in Q4 2023, with trading volume surging by an impressive 203.7% to $90.4 billion. Following closely, Bybit experienced a growth rate of 162.1% ($107.5 billion), while KuCoin saw 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, closing December with a market share of 3.3%.

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