Binance Extended Crypto Exchange Dominance in March
The exchange captured 30% of spot volume market share last month, extending its lead over competitors including Coinbase and OKX.
Binance, one of the world’s leading cryptocurrency exchanges, captured 30% of spot volume market share in March, according to a report by CryptoCompare. The market share rose from 29% in February.
The exchange handled some $490 billion of spot trades in March, a 15% increase from the month prior. Binance was followed by Coinbase (COIN) at $81.9 billion (down 12%) and OKX with $75.9 billion (down 26%).
“Binance has had significant market share for quite some time already,” said Florian Giovannacci, head of trading at Covario, the Swiss based digital asset prime broker. “They are very reliable (technically), cover a large array of tokens and offer some of the best liquidity, which attracts volume.”
In March, the price of bitcoin (BTC) reached a monthly high of $48,214, according to data from Messari. At press time, bitcoin was trading at around $38,900, down 19% since the March high.
The 30% dominance in March is just marginally below Binance’s record market share of 34% that was reached in November 2021.
Also in March, derivatives volumes increased after six straight months of decreased volumes. Derivative market activity increased by 4.6% to $2.74 trillion, attaining a market share of 62%, compared with the market share for spot volumes which was 37%.
This is still significantly lower than the all-time highs reached in May 2021. Derivative volumes reached a total of $9.99 trillion in May last year. The derivatives market share dominated 68% at the time.
Binance also led the derivative markets with 52% of total volumes in March. This was followed by OKX and Bybit.
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When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
What to know:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
