Over 98% of transactions involving Bitcoin (BTC) spot trading on February 18 and 19 went through the centralized exchange Binance, which controls practically all of the market.
Data from Coinalyze shows that Binance has a market-dominating $6.8 billion volume, a trend that has only intensified following the demise of FTX.
Since January 2023, Binance has grown its spot BTC trading by almost 5%, boosting its market share. Additionally, over the past year, Binance’s market share for spot volume has been steadily increasing and now represents approximately 100% of the market.
Due to its no-trading-fee policy, Binance has been able to dominate the BTC trading market. The exchange is now exposed to bots that can abuse the system as a result, though. Exchanges like Coinbase, in contrast, charge $5 to $7 in transaction fees, making them less vulnerable to bots.
According to CoinMarketCap, Binance continues to dominate the entire spot trading market in terms of daily trading volume, pushing above $21 billion. With a $1.4 billion trading volume, Coinbase is the only other exchange with a daily exchange volume above $1 billion.
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