Binance’s Market Dominance Drops to 34% as Competition Grows

Binance, the world’s largest cryptocurrency exchange, has seen its market share decline consecutively over the past three months after reaching a yearly high of 57% in February 2023. According to data from CCData, Binance’s market share has dropped to its lowest level in eight months, accounting for a mere 34% of the market. The trading platform’s spot market share dropped to 34.3% in September from 38.5% the previous month, according to data compiled by researcher Kaiko.

Binance’s spot trading volume dipped to $212 billion in May, recording the lowest monthly volume recorded since November 2020, when it traded $176 billion. In April, the exchange saw $287 billion worth of trading volume. The decline in market share comes as the exchange has suffered scrutiny from U.S. regulators and has closed its operations in Canada due to regulatory concerns. There have also been reports that Binance may have laid off as much as 20% of its staff.

Binance’s Australian arm also experienced trouble earlier in the week, with BTC trading at a 20% discount on Binance Australia after it halted Australian dollar bank transfers. The exchange’s dominance of the crypto trading market has grown in the past, but the exchange is now facing increased competition from other exchanges. The SEC has also filed a lawsuit against Binance and its founder, alleging securities law violations.

Binance’s market share has dropped to 34% as competition grows in the cryptocurrency exchange industry. The exchange has suffered scrutiny from U.S. regulators and has closed its operations in Canada due to regulatory concerns. Binance’s Australian arm also experienced trouble earlier in the week, with BTC trading at a 20% discount on Binance Australia after it halted Australian dollar bank transfers. The decline in market share comes as the exchange has faced increased competition from other exchanges.