Author: Helen LianGuairtz, Cointelegraph; Translation: Song Xue, LianGuai
According to reports, due to ongoing regulatory issues in the United States, major global cryptocurrency exchange Binance continues to lose its market share.
Bloomberg reported on October 5, citing analysis from cryptocurrency data provider CCData, that Binance’s spot market share has declined for the seventh consecutive month in September 2023.
The report shows that Binance’s spot market share decreased from 38.5% in August to 34.3% in September. In January 2023, Binance’s spot market share reached as high as 55.2%.
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Chart of Binance’s global spot market share percentage so far this year. Source: Bloomberg
In addition to the spot market, Binance’s market share in the derivatives market is also continuously decreasing. The report shows that Binance’s derivatives market share decreased from 53.5% in August to 51.5% in September. In January, the exchange’s market dominance in the derivatives market exceeded 62%.
Jacob Joseph, a research analyst at CCData, said that the regulatory challenges faced by Binance in the United States are not the only reason for the exchange’s loss of market share. The analyst believes that this decline is due to Binance ceasing zero-fee trading promotions for major trading pairs.
As Binance’s market share declines, the exchange has also ended its services in some major markets this year. In September, Binance announced a complete exit from Russia, selling all of its local business to the newly established CommEx exchange (which is created by undisclosed entities). Russia is one of Binance’s largest markets, with Russian visitors accounting for nearly 7% of the platform’s traffic.
In early September, Binance adjusted its trading fees and started charging regular fees based on users’ VIP levels. For example, Binance began charging ordinary users a 0.1% fee for spot and margin trading.
The report states that Binance has lost spot trading volume to exchanges such as HTX, Bybit, and DigiFinex. Competitors such as OKX, Bybit, and Bitget have also expanded their market share in the derivatives market, according to reports.
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