Binance Led Market Share in 2022 Despite Overall Decline in CEX Volumes

Even as trading volume on centralized exchanges (CEX) declined 46% over the course of 2022, Binance remained the leader with a 66.7% market share in December versus 48.7% to start the year, according to a report by CryptoCompare.

That major jump in market dominance came even as spot trading volume on Binance tumbled 45.3% during the year to $5.29 trillion.

Among the 11 exchanges tracked, Binance and Bybit were the only ones that saw their market shares increase steadily in each quarter of 2022, said the report.

In second place for market share in December was Coinbase at 8.2% versus 10.1% at the start of the year. And behind Coinbase was OKX, which saw its market share in December at 5.9%, versus 10.7% at the beginning of 2022.

“One of the biggest signals showing the lack of participation is the drop in volatility and liquidity in the market,” said the report. “On October 22, the annualized 30-day volatility of BTC dropped to 26.6% – the lowest figure since July 2020, reflecting the risk averse sentiment in the market.”