Sirens are sounding for the giant cryptocurrency exchange Binance. With the recent events, Binance may have faced a great danger. According to Bloomberg reports, Binance is losing its market dominance day by day! Here are the details…
Bloomberg report points to a big danger for Binance!
The cryptocurrency market and major cryptocurrency exchanges have faced major problems since the past few months. The latest Bloomberg report reveals that the giant cryptocurrency exchange may have to deal with big problems in the near future. According to the published report, the giant cryptocurrency exchange Binance is losing its dominance in the crypto market day by day. Instead of Binance, investors are turning to major cryptocurrency exchanges such as OKX, Huobi and Bybit. This has led these exchanges to gain large market shares.
Especially recently, the increasing scrutiny and regulatory actions of US regulators on Binance have created a great concern for users of the giant cryptocurrency exchange. According to experts, a possible sanction by the US Securities and Exchange Commission (SEC) could be devastating for the stock market and the market. The influence of the SEC, particularly on major crypto exchanges Coinbase and Binance, has resulted in the two exchanges witnessing less liquidity compared to previous quarters. On the other hand, according to experts, the withdrawal of market making activities by Jump Crypto and Jane Street from the USA will put more pressure on the stock markets.
“Binance’s market share has dropped with increasing pressure!”
As Cryptokoin.com previously quoted, US regulators have taken strict regulatory measures against major crypto exchanges Coinbase, Bittrex, and crypto-related entities. The US SEC and NYDFS took action against Paxos, ordering the firm to stop issuing Binance USD (BUSD) stablecoins. However, Binance had to end its activities such as zero producer fees and zero fees for Bitcoin trading for BUSD. The exchange has decided to switch from BUSD to a low-cap TrueUSD (TUSD) stablecoin. Binance CEO “CZ” confirmed the reason behind their recent changes, making BTC/TUSD the only zero-fee spot trading pair from March 22.
Important update. Given recent events, we are moving 0 fee BTC trading from BUSD to TUSD.
Let's spread the liquidity to more pairs.
https://t.co/6SwqjZYSFZ— CZ 🔶 BNB (@cz_binance) March 15, 2023
Binance’s share of spot trading volume fell to 51 percent in May, down from 53 percent in March, according to cited Kaiko data. However, activity on other exchanges increased and Huobi’s market share rose from 2 percent to 10 percent, while OKX’s increased from 5 percent to 9 percent. The market shares of South Korean stock exchanges such as Bybit increased from 8 percent to 14 percent.
The pressure on Binance and its CEO may increase even more!
On the other hand, Cici Lu, the founder of Singapore-based Venn Link Partners, stated that the pressure on Binance and its CEO will increase with the intense legal regulations in the USA and used the following words:
Pressure in the US has caused users to worry about the safety of their funds, which is why they turn to other centralized exchanges.
In his statements on the subject, a Binance spokesperson claimed that the decrease in market share with the increasing SEC pressure was lower than anticipated in the modeling studies. The giant cryptocurrency exchange stated that it will continue to improve its products and services and invest in compliance processes to prepare for a “new regulatory era”. On the other hand, statements from the CEO of the exchange, Changpeng Zhao, reveal that he plans to reduce his shares on the exchange to reduce the impact on Binance.US amid targeted attacks on the stock market.
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