Binance, the world’s largest cryptocurrency exchange, has experienced a decline in its market share of trading volume among other exchanges in the past few weeks. According to Kaiko, a blockchain analytics platform, Binance’s market share of trade volume decreased by 16% and was at 54% by the end of Q1 2023.
Although Binance still processes more volume than the total of its competitors, the company’s decision on March 15 to terminate zero-fee spot and margin trading for 13 trading pairs, such as BNB, Bitcoin, and Ether trading pairs with various fiat currencies and stablecoins, played a significant role in its market share decline.
Kaiko reported that stopping zero-fee trading resulted in a substantial decrease in Binance’s surplus volume, causing a more balanced allocation of market share among the other exchanges.
Binance’s U.S. Division, Binance.US, assisted in reducing the effects of the loss, according to Kaiko, with its market share increasing from 8% to 24% over the course of the quarter.
Binance did not experience a substantial decline in all sectors, as it continued to dominate in derivatives trading, surrendering only 2% of its market share in the last quarter.
Kaiko stated:
“The trend is quite different when looking at derivatives volumes: Binance only lost about 2% of market share for perpetual futures trade volume.”
The U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance on March 27, 2023, accusing the company of violating derivatives laws by offering trading services to U.S. customers.
The CFTC also claimed that Binance did not register with the commission despite being established for years and disregarded its guidelines. Furthermore, the company’s CEO allegedly instructed American customers to use virtual private networks to hide their locations.
Changpeng Zhao, Binance’s CEO, described the CFTC complaint as “unexpected and disappointing.” Zhao stated in a blog post on the company’s website that they disagreed with the issues presented in the complaint because it was an incomplete recitation of facts.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
