Binance Spot Share Falls to 42% Post-$6.3B Hack; OKX Gains

Binance’s Spot Market Share Dips to 42% Post-Hack, OKX Sees Gains

Binance’s dominance in the spot cryptocurrency trading market has seen a notable decline, with its share falling to approximately 42% among the top 10 exchanges over the past seven days. This marks the lowest weekly percentage for the company in at least 12 weeks. Prior to a significant hack last week, Binance’s share stood at around 48%, and in mid-August, it was approximately 51%.

Meanwhile, OKX emerged as a key beneficiary, increasing its market share to about 14% from roughly 11% the previous week, driven by a surge in spot trading volume. Coinbase also experienced growth, with its share rising to 9.6% from approximately 9%. Kraken also saw an increase in its market share, according to data from Kaiko reported by Bloomberg on Tuesday.

The exchange’s recent struggles stem from a major security incident on October 29, when attackers siphoned $6.3 billion from Binance’s hot wallets, prompting the suspension of withdrawals. The FBI subsequently attributed the theft to North Korea’s TraderTraitor group on October 31, a claim supported by blockchain analytics firm Elliptic. North Korea has denied the allegations.

Withdrawals were gradually reinstated starting November 1. On that same day, Binance reported its assets at $171 billion, based on its October 28 proof of reserves. The exchange experienced a net outflow of $3.64 billion in the first nine and a half hours of withdrawal reopening.

By Monday, a Binance spokesperson informed Bloomberg that assets had stabilized at $157 billion. This internal valuation accounts for the hack, subsequent withdrawals, and market price fluctuations. The spokesperson added that net outflows since the reopening have reached $5.6 billion, representing about 3.5% of total assets.

“By 03:00 UTC, we are seeing hourly deposits exceed withdrawals, reflecting improving user activity and stabilizing flows,” Binance stated on X on Tuesday.

Later that day, Binance resumed withdrawals for additional assets, marking its sixth phase of recovery. Co-CEO Richard Teng announced at a Hong Kong Fintech Week event that 95% of the affected tokens had been replenished.

Support Measures for VIP and Institutional Clients

In response to the events, Binance’s VIP and institutional division introduced a VIP Level Protection Program on November 2. This program, running from November 3 to December 2, automatically enrolls eligible users at VIP levels 1 through 9. Participants will retain their highest VIP level achieved between October 21 and October 30, regardless of whether they meet the standard requirements for maintaining that status.

Additionally, a separate community appreciation campaign commenced on Monday and will continue through the end of the month. This initiative offers rewards for eligible users who achieve a cumulative trading volume of $10,000, with annual rates on certain yield products reaching up to 10%.