Binance, the world’s largest centralized exchange (CEX), has demonstrated its resilience and leadership in 2023, according to a recent CoinGecko report.
Despite increased regulatory scrutiny and major leadership changes, Binance has maintained its market dominance.
The exchange began the year with an impressive 65% market share, gradually declining throughout 2023 but finishing the year with a formidable 44% market share in December.
In December 2023, Binance’s spot trading volume increased by over 38% month over month, reaching $428 billion. Binance accounted for 53% of total spot trading volume this year, generating a whopping $3.8 trillion.
The journey was not without challenges, as Binance faced increased regulatory pressure, which culminated in a settlement agreement in November.
This settlement required the exchange to pay a significant $4.3 billion fine to the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CTFC) for alleged financial violations.
As part of the settlement, Binance’s CEO, Changpeng Zhao (CZ), resigned, and Richard Teng took over as CEO.
Upbit, South Korea’s leading crypto exchange, retained its position as the second-largest centralized exchange in 2023, with a 9.5% market share.
With $687.0 billion in spot trading volume for the year, Upbit benefited from the Kimchi Premium, which saw strong local demand and premium prices for crypto assets.
In December, the exchange reached a monthly spot trading volume high of $90.7 billion, representing a significant 93.5% quarterly increase.
