Binance, the world’s leading cryptocurrency exchange, has reportedly continued to lose market share due to ongoing regulatory issues in the United States.
Binance’s spot market share fell for a seventh consecutive 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. As of January 2023, Binance’s spot market share was as high as 55.2%.
Besides the spot market, Binance has also lost market share in the derivatives market. According to the report, Binance’s derivatives market share increased from 53.5% in August to 51.5% in September. In January, the exchange’s dominance in the derivatives market accounted for more than 62%.
According to Jacob Joseph, research analyst at CCData, Binance’s regulatory challenges in the United States are not the only reason the exchange has lost market share. The analyst believes that this drop is also due to Binance ending its fee-free trading promotion for major trading pairs.
Binance’s decline in market share also came as Binance is ending its services in some of its key markets this year. In September, Binance announced its complete exit from Russiaselling its entire local business to the new CommEx exchange, founded by undisclosed entities. Russia was one of the largest markets for Binance, with Russian visitors accounting for almost 7% of the platform’s traffic.
Binance Featured changes to its trading fees in early September, reapplying regular fees based on the user’s VIP level. For example, Binance begin charging a 0.1% fee on spot and margin trades from regular users.
According to the report, Binance’s lost spot trading volume was spread across exchanges such as HTX (formerly Huobi), Bybit, and DigiFinex. Rival exchanges like OKX, Bybit and Bitget have also reportedly gained market share in derivatives.