Binance continues to lose crypto market share
Binance continues to lose crypto market share
Cryptocurrency exchange Binance continues to lose spot market share amid declining volatility and continued pressure from many global regulators.
CCData data showed that Binance's spot market share fell to 34.3% in September from 38.5% the previous month. Derivatives market share for the same period fell to 51.5% from 53.5% in August.
The decline in spot and derivatives market share came as Binance is currently embroiled in legal battles with the U.S. Commodity Futures Trading Commission and the Securities and Exchange Commission, Bloomberg reported.
On March 27, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its CEO, Changpeng Zhao, alleging that the exchange violated derivatives trading rules.
On June 5, the U.S. Securities and Exchange Commission (SEC) sued Binance and its CEO, Changpeng Zhao, accusing them of 13 violations of the law.
In addition, the exchange's discontinuation of a promotion that offered zero transaction fees also led to a reduction in trading activity for its clients.
"The halting of zero-fee trading promotion for popular trading pairs, combined with the concerns around regulatory scrutiny on the exchange, has contributed to this decline," said Jacob Joseph, a Research Analyst at CCData.
According to CCData, Binance's spot market share has been absorbed by other major cryptocurrency market participants such as HTX, Bybit, and DigiFinex. Meanwhile, exchanges such as OKX, Bybit, and Bitget have managed to grab Binance's market share in the derivatives sector.
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