Crypto spot trading markets are 'increasingly concentrated', says Kaiko

Companies • July 28, 2023, 8:12AM EDT
Published 1 minute earlier on
The Block

Quick Take

  • The top two largest exchanges account for more than 50% of the entire spot trading market.

Crypto's spot market is becoming increasingly concentrated, according to data from Kaiko. 

The top two largest exchanges accounted for more than 50% of the total market this year, which is a slight increase from 2020. In 2020, Binance — the largest exchange by trading volumes — accounted for just 24% of the spot market. That figure currently stands above 50%. 

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"This trend could continue amid a wider downturn in market activity, which puts pressure on smaller exchanges," Kaiko said. 

Still, Binance's spot trading volumes have been declining over the last year, according to The Block's data dashboard. The exchange's spot market share is on track to hit its lowest level since last July, with its share of the total market standing at 47.15%. 


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].

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