New reports show that the market share of Binance, the world’s largest cryptocurrency exchange, has fallen to its lowest level in the last 8 months. Behind the losses were the CFTC lawsuit and the recently ended zero-fee Bitcoin trading campaign.
Binance’s market share has declined with these developments
The lawsuit filed by the CFTC against Binance and its executives in late March damaged the reputation of the exchange. The US regulator accused Binance executives on grounds such as tax evasion.
The second blow came after Binance’s decision to end its zero fee promotion for most BTC trading pairs. A report published by CCData in mid-May reveals that the market share of the exchange continued to drop to 46.3% for the second month in a row in April. As a result, Binance’s market share hit 8-month lows last month.
Meanwhile, according to a Binance representative, it was predicted to see a decline after the company’s decision to end its zero-fee Bitcoin trading. Representatives stated that this was “not a concern”.
Binance maintains its lead despite sharp decline
According to a recent report from crypto analytics platform CCData covering centralized exchanges, Binance is still the clear leader in the market. Highlights from the report are as follows:
- Spot trading volume on Binance fell 48.1% to $287 billion in April. Thus, it recorded the second-lowest monthly trading volume since 2021. Binance’s market share also continued to decline, dropping 46.3% for the second month in a row. Thus, it reached the lowest market share since October 2022.
- Despite falling volumes, Binance’s position as the dominant exchange in the industry is still far from threatening. The next largest exchanges, Coinbase and OKX, accounted for only 5.60% and 5.39% of the total spot trading market in April.
According to CMC data, the latest situation among central exchanges according to 24-hour trading volume is as follows:
- Binance – $4,763,916,798
- Coinbase Exchange – 450,233,891
- Kraken – 233,372,507
- KuCoin – 324,875,148
- Bybit – 420,714,857
- Bitstamp – 77,165,889
- OKX – 457,161,694
- Bitfinex – 34,202,394
- Bitget – 544,189,875
- Gemini – 13,633,123
Exchange’s spot market share returns to pre-FTX levels
According to the report, Binance’s spot trading volume dropped 48.1% in April. Thus, it recorded the second lowest monthly trading volume since 2021. Current levels represent levels prior to November when FTX went bankrupt.
These developments came as Binance experienced other changes in its operations. On May 12, the exchange announced its decision to cease operations in Canada, citing the new regulations. Then, reports began to emerge about plans to lay off 20% of the workforce in June. As we quoted as Kriptokoin.com, CEO CZ labeled these news as Fud. He included the slogan “4” in his statements on Twitter.
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