Return of the CEX: Binance Trade Volume Market Share Surges

With the demise of its biggest rival, FTX, it is no surprise that the market dominance held by Binance has increased. However, there are many discrepancies in the volume figures.

FTX International was the second-largest centralized exchange by volume before its collapse. Binance has been the undisputed trade volume champion for some time. However, that dominance has increased with the demise of its largest rival.

According to figures from The Block, Binance now has more than three-quarters of all CEX trade volume. A Nov. 29 chart citing data from CryptoCompare revealed that the total volume for the month was $642.7 billion.

According to the outlet, Binance’s share of this was $481.7 billion in November. This works out to be 77% of the total.

Binance Volume Discrepancies

The figures sound a little excessive compared to the next largest exchanges, Coinbase, OKX, Kraken, Huobi, and KuCoin.

However, there is little denying that the Binance market share has benefitted this month. According to the company’s own metrics site, CoinMarketCap, Binance has a currently daily trade volume of $12.9 billion.

Its nearest rival, Coinbase, has just 11.6% of this, with $1.5 billion in daily volume. CoinGecko figures for daily volumes are very similar.

Furthermore, CoinGecko tracks 544 crypto exchanges with a total 24-hour trading volume of $59.5 Billion. This puts the current Binance volume share at around 21.7%. However, it is a daily snapshot, not the entire month of November.

Exchange volumes surged in November due to the FTX collapse. Crypto investors and holders have been taking their funds off centralized exchanges in favor of self-custody solutions.

Furthermore, centralized exchanges have been thrown into the spotlight over their reserves. Many have been scrambling to release numbers, and many have been questionable, with heavy reliance on their own tokens.

DEX Volumes Increasing

Volumes on decentralized exchanges have been increasing as they become more appealing to investors wanting control over their assets.

CoinGecko, which tracks 100 DEXes, reports a 24-hour volume of $1.95 billion, with Uniswap leading the pack on both Layer 1 and Layer 2.

November DEX volume topped $90 billion, an increase of more than 80% over October, according to Forbes.

The CEX exodus has increased volumes on DEXes, but it is too early to determine if the trend will continue. One conclusion that can definitely be made though is that Binance’s dominance has increased substantially this month.

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