Binance’s Market Share Is Shrinking, What’s Up?

Liputan6.com, Jakarta Binance appears to have lost market share amid changes to its trading fee structure and a wider regulatory crackdown on the world cryptocurrencies by US regulators.

Binance, the world’s largest digital trading platform, now holds only about 50 percent share of the spot crypto market, its lowest since April 2022, according to data from senior research analyst at Kaiko, Dessislava Ianeva.

Its market share fell after the platform, in March removed no-fee trading on certain pairs.

“It is possible that due to the current regulatory environment some institutions are taking a wait and see approach, staying out of the market, or deploying less funds to other trading venues,” said Ianeva, quoted from CoinDesk, Thursday (11/5/2023).

Meanwhile, a report from CCData said Binance’s spot market share fell to levels before FTX’s collapse in November, with spot trading volume on the exchange dropping 48 percent to USD 287 billion in April.

That marked the second lowest monthly trading volume since 2021 and its overall market share also declined, the data provider said.

Crypto market watchers are very focused on trading volume and liquidity in the market, as many retail and institutional investors have fled after the FTX collapse at the end of last year.