According to data on the monthly visits to the website (not including mobile app) from Similarweb and CoinMarketCap, current in July 2024, the most popular crypto exchanges are Binance, Coinbase, and Bitget. Binance leads the pack with 65.5 monthly visits, followed by Coinbase with 40.9 million and Bitget with 31.1 million.
Bybit and OKX are fourth and fifth with 30.4 million resp. 27.1 million. Rounding out the top 10 are WhiteBIT, HTX, Gate, MEXC, and Upbit.
In the first six months of 2024, the amount of Bitcoin, Tether, and Ether held by users on Bitget increased by 73%, 80%, resp. 153%, equivalent to the approximate capital inflow of $700 million. Bitget also attracted 2.9 million new users. Spot trading volume on the exchange increased from $28 billion in Q1 to $32 billion in Q2, or by over 10%. This reflects an increase in overall market trading volume and cryptocurrency adoption.
There is room for all market players
An analysis published on GitHub revealed that small and large crypto exchanges complement rather than compete against each other. Although there are more than 1,000 crypto exchanges on the market, they essentially offer the same assets to trade. In the US, there are over 100 active cryptocurrency exchanges, but just 16 for equity trading. In 2022, the top two crypto exchanges only accounted for around 14% of all Bitcoin trading volume.
How do exchanges of different sizes complement each other? When a big exchange lists a new coin, its trade volumes on small exchanges typically increase, in some cases, by up to 76%. What’s more, small exchanges list the same coins as big ones. Large exchange listings correlate with peripheral exchange listings of the same coin.
Finally, the entry of a large exchange usually leads to reduced coin prices across small exchanges, sometimes by up to 22%. This indicates that arbitrage flows across small and large exchanges might play a role.
Tether’s market share dropped by 8% in 2024
It’s estimated that USDT’s market share on centralized exchanges has declined from 82% to 74% this year. One reason could be increased competition from FDUSD and other stablecoins. FDUSD benefited from zero fees on Binance. USDC’s market share peaked at 12% at the end of June, fueled by trading volumes on leading exchanges. Interest in yield-bearing stablecoins like Paxos is also increasing.
