Crypto Exchange Q3 Report: Binance's market share declines slightly but still leads the market
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Crypto Exchange Q3 Report: Binance's market share declines slightly but still leads the market
In the third quarter of 2024, the cryptocurrency market experienced significant volatility due to macroeconomic factors, with a notable decline occurring in early August.
Navigating Web3 tides with focused insightsAuthor: TI Research
In the third quarter of 2024, the cryptocurrency market experienced significant volatility. At the beginning of August, an unexpected interest rate hike by the Bank of Japan triggered a collapse in yen carry trades, causing turmoil across global financial markets and prompting a sharp sell-off in crypto assets. Risk aversion surged globally, leading to a rapid decline in asset prices—Bitcoin briefly dropped to $49,000. Additionally, widespread forced liquidations further intensified selling pressure. However, as expectations for Federal Reserve rate cuts grew and global liquidity improved, investor sentiment gradually recovered, and the market rebounded toward the end of the quarter, with Bitcoin climbing back to $64,000.
How did exchanges perform amid such turbulent conditions? We are pleased to present our timely Q3 2024 Exchange Quarterly Report. In this report, we summarize key industry data and focus on the top 10 centralized exchanges, using performance metrics to help you understand shifts in the exchange landscape.
The total trading volume of the top 10 exchanges reached $15.1 trillion, down 6.74% from the previous quarter
In Q3, the combined trading volume of the top 10 exchanges amounted to $15.1 trillion, a 6.74% decline compared to Q2. The continued downward trend was primarily driven by global macroeconomic factors. However, after the Federal Reserve cut rates by 50 basis points, market sentiment began shifting positively. With improving sentiment and macro conditions, trading volumes are expected to rebound in Q4, potentially reaching $20 trillion.
Bitcoin's price remained highly volatile during the quarter. After falling below $50,000 at the start of August, it quickly recovered and closed the quarter around $64,000. With improving liquidity in both the U.S. and China, Bitcoin is projected to rise above $70,000 in Q4 and has a strong chance of reaching new all-time highs.
Binance’s market share declined slightly but remains the market leader
In Q3, Binance recorded nearly $5.6 trillion in trading volume, though its market share decreased by 4.51% compared to the previous quarter. Despite this dip, Binance maintained its dominant position, retaining over 37% market share.
Among other exchanges, MEXC saw the most notable growth, increasing its share by 3.6%, followed by Bybit, which gained 1.84% compared to Q2.
Spot trading volume share declined at most exchanges; only Bybit saw an increase
In Q3, the proportion of spot trading volume relative to derivatives declined at most major exchanges. Bybit was the only platform where spot trading volume share increased slightly. Ongoing price volatility shifted market attention toward more speculative areas—particularly meme coins—leading to reduced spot trading activity across platforms.
Traders are increasingly favoring high-frequency derivatives trading, seeking faster returns amid heightened market volatility.
Total spot trading volume among the top 10 exchanges fell 21% to $2.7 trillion
In Q3 2024, the spot market continued the downward trend seen in Q2, with average daily trading activity dropping from $37 billion in Q2 to $29 billion in Q3. Total spot trading volume across the top 10 exchanges amounted to approximately $2.7 trillion, down 21% from $3.4 trillion in the prior quarter.
However, with improving market sentiment and rising global liquidity, spot trading volume is expected to rebound in Q4, likely ranging between $3.5 trillion and $4 trillion.
Derivatives trading volume continues to decline, with daily average below $150 billion
In Q3, total derivatives trading volume reached $12.8 trillion, down approximately 2.3% from $13.1 trillion in Q2. The ongoing decline since Q2 reflects a continued consolidation phase within the crypto market.
Excluding a brief spike at the beginning of August due to macroeconomic volatility, the daily average trading volume remained below $150 billion, consistent with Q2 levels.
Binance leads the market with a 30% share of open interest
In Q3, most exchanges saw declines in their open interest share. Binance’s share dipped slightly by 0.25%, yet it maintained its leading position. BingX experienced the largest drop, losing 1.27%. HTX recorded the highest gain, increasing by 2.7%, followed by Gate.io with a 1.3% rise.
Impacted by macro volatility, open interest across all exchanges dropped sharply at the beginning of August. However, Binance’s decline was relatively smaller, resulting in a temporary increase in its market share during that period.
Most exchange tokens underperformed in Q3, with only GT outperforming Bitcoin
Amid overall market weakness, most exchange tokens underperformed in Q3, continuing the downward trend observed since Q2.
GT stood out, rising 16.5% by the end of the quarter, outperforming both Bitcoin and other exchange tokens. BNB, ranked fourth by market cap, failed to match Bitcoin’s gains but still rose 4.8%. OKB increased by 1.4%, and LEO posted a modest 0.9% gain. In contrast, other tokens performed poorly, with MX suffering the steepest decline—down 22.6% from the end of Q2.
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