In the third quarter of 2024, the combined trading volume of the top 10 centralized exchanges (CEXs) reached $3.05 trillion. This figure represents the total value of all trades made on these exchanges during this period. However, this volume was down by 14.8% compared to the previous quarter, indicating a decline in trading activity earlier in the year.
Centralized exchanges (CEXs) allow users to buy, sell, or trade cryptocurrencies like Bitcoin and Ethereum. Organizations manage these platforms as intermediaries, holding users’ funds and facilitating trades.
Users must trust these companies to safeguard their money and information in exchange for trading access, liquidity, and customer support. Creating an account, verifying identity, and storing funds in platform-controlled wallets is typically required.
According to Coingecko, among the CEXs, Binance maintained its position as the largest by a significant margin, capturing 38% of the market share by the end of September 2024. This indicates that 38% of all trades on centralized exchanges occurred on Binance.
However, this was the first time since January 2022 that Binance’s share fell below 40%. This decline reflects increased competition and suggests that while Binance remains dominant, its market grip is slightly weakening.
The rise of Crypto.com
One of the most significant changes involved Crypto.com. At the end of the second quarter, it was ranked ninth in terms of trading volume. By the end of the third quarter, it had surged to second place.
This impressive leap was marked by a staggering 160.8% growth in trading volume during the quarter. By September, Crypto.com controlled 14.4% of the total market. Various factors could explain this growth, such as new features, an improved user experience, or effective marketing campaigns that attracted more users.
Crypto.com has had a strong year. They launched the $Mery token and added $EIGEN for automated trades. The platform introduced 20x leverage for crypto contracts and partnered with 21.co to improve token liquidity. They also launched Contracts for Difference (CFDs), added DeFi staking, and partnered with Standard Chartered and PayPal to expand payment options.
Users can earn 11.6% by staking $STX and receive 4% rewards with $FTM. Crypto.com Pay is now accepted at Starbucks, and the platform received regulatory approval in Bahrain. They have also begun integrating AI with their AI Agent SDK.
On the other hand, some exchanges didn’t perform as well. Both OKX and Gate.io experienced trading volume declines of over 30%, indicating a significant drop in activity on their platforms. These exchanges might have faced challenges such as increased competition, reduced trader interest, or technical issues that prompted users to migrate elsewhere.
Coinbase, another well-known exchange, also struggled. Its trading volume fell by 23.8%, causing it to drop from the sixth-largest exchange to the tenth spot.
One major reason behind this may be its legal battle with the SEC. In May 2024, Coinbase Global and its CEO, Brian Armstrong, were sued in California. The lawsuit claims Coinbase misled investors by selling unregistered securities while asserting it wasn’t a securities broker. The alleged securities included Solana, Polygon, Near Protocol, Decentraland, Algorand, Uniswap, Tezos, and Stellar Lumens.
