In a significant market shift, Upbit, a South Korean cryptocurrency exchange, surpassed both Coinbase and OKX in spot trading volume during the month of July. The data from CCData, published on Aug. 3, revealed this noteworthy development.

Upbit’s Remarkable Performance

In July, Upbit’s spot trading volume witnessed an impressive increase of 42.3%, reaching a staggering $29.8 billion. On the contrary, Coinbase and OKX experienced declines of 11.6% and 5.75% in their trading volumes, settling at $28.6 billion and $29.0 billion, respectively.

As a result of this outstanding performance, Upbit now holds the position of the second-largest exchange by trading volume, just behind Binance, according to the report. Binance has maintained its dominance in the market with a trading volume of $208 billion.

A screenshot of the report from CCData

Nevertheless, Binance’s market share has been steadily decreasing for the past five months, currently standing at 40.4%. This represents a significant decline from its peak market share of 57.5% in August 2022.

The report also highlights that centralized exchanges (CEXs) encountered a setback in their trade volumes, recording the second-lowest levels since 2021. This trend can be attributed to several factors.

Shift Towards CEXs and DEXs

Following the fall of FTX in November 2022, users began to seek alternatives for trading. As a result, many turned to CEXs like Binance or decentralized exchanges (DEXs) to conduct their crypto trades. The growing popularity of DEXs became evident when their trading volume surged by a remarkable 444% in June.

However, the rise of DEXs was also influenced by legal challenges faced by some of the major CEXs, including Binance and Coinbase, who were entangled in significant lawsuits with regulators. These legal battles compelled traders to explore decentralized alternatives, contributing to the soaring trading volume on DEXs.

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