Binance, the world’s largest cryptocurrency exchange by volume, has steadily increased its market dominance over the past six months.
In January 2022, it held 39 per cent of the total crypto CEX trading volume. By June 2022, that share had increased to 47 per cent.
“Binance’s growth at a time when the crypto market is contracting is a testament to the confidence it inspires in its users,” says CryptoMonday CEO Jonathan Merry.
He insisted, “Binance’s dominance is due in part to its low fees, a wide range of altcoins, and strong security measures. Besides, it’s also one of the few exchanges that allow P2P trading making it the go-to exchange for many cryptocurrency traders.”
The key to Binance’s success has been its focus on user experience. Binance offers a simple and intuitive platform that is easy for novice and experienced traders. In addition, Binance is known for its fast transaction speeds and robust security.
UpBit, the South Korean cryptocurrency exchange, maintained its spot as the second largest exchange by market share. The South Korean exchange had a nine per cent market share.
Likewise, BitMart was one of the best performers in second quarter 2022. The exchange grew its market share from two per cent in January to seven per cent at the end of June.
Finally, FTX, the third largest CEX, also grew its market share in June. The exchange’s eight per cent dominance was a minimal leap from the five per cent it held in most of first quarter 2022.
OKX was the worst performing CEX in 2022 after closing June with a market dominance of just five per cent. That significantly dropped from the 14 per cent held at the year’s start. OKX’s struggles are mainly due to its low liquidity, which makes it challenging to trade large amounts of cryptocurrency.