Major global cryptocurrency exchange Binance has reportedly continued to lose market share amid ongoing regulatory issues in the US.
Binance’s spot market share fell for the seventh straight month in September 2023, Bloomberg reported on October 5, citing analysis from cryptocurrency data provider CCData.
According to the report, Binance’s spot market share fell from 38.5% in August to 34.3% in September. In January 2023, Binance’s spot market share was as high as 55.2%.
Aside from the spot market, Binance has also lost share in the derivatives market. According to the report, Binance’s derivatives market share fell from 53.5% in August to 51.5% in September. In January, the stock market’s dominance of the financial derivatives market reached more than 62%.
According to CCData Research Analyst Jacob Joseph, the regulatory challenges faced by Binance in the US are not the only reason the exchange has lost market share. The analyst believes that the decline is also a result of Binance stopping its promotion of no-fee trading for major trading pairs.
Binance’s market share decline also came as Binance ended offering services in some of its major markets this year. In September, Binance announced its complete exit from Russia, selling its entire domestic business to the newly launched CommEx exchange, which was founded by undisclosed entities. Russia has been one of the largest markets for Binance, with Russian visitors accounting for nearly 7% of traffic on the platform.
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Binance made changes to its trading fees in early September, reintroducing normal acquisition fees based on a user’s VIP level. For example, Binance I started Charge a 0.1% taker fee on spot and margin trades from regular users.
According to the report, Binance’s lost spot trading volume was distributed among exchanges such as HTX (formerly Huobi), Bybit, and DigiFinex. Rival exchanges such as OKX, Bybit and Bitget have reportedly captured market share in derivatives.
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