Binance, the world’s largest cryptocurrency exchange, has seen its market dominance slip to its lowest level in four years, according to a report from digital asset data provider CCData. The report reveals that Binance processed 36.6% of the total trading volume for spot and derivatives markets in September, a sharp decline from its earlier highs.
Regulatory Challenges Impact Binance
Binance’s reduced market share can be attributed to the regulatory challenges the exchange has faced across multiple countries. Over the past two years, Binance has been forced to exit key markets such as Canada, Germany, and the Netherlands due to increasing regulatory scrutiny. In the United States, Binance and its founder, Changpeng “CZ” Zhao, were charged with violating anti-money laundering laws, further compounding the exchange’s legal troubles. In September, Binance’s spot trading volume dropped more than 20%, leaving it with just 27% of the spot market—its lowest share since 2020. Its share of the derivatives market, while still dominant at 41%, also saw a decline, with competitors like OKX and Bybit gaining ground.Binance Faces Growing Competition
The decline in Binance’s market dominance is occurring alongside a broader contraction in global cryptocurrency trading volumes. Spot and derivatives volumes fell by 17% in September, reflecting the ongoing market downturn. Meanwhile, Binance’s competitors are quickly catching up, with OKX processing 22% of the total spot and derivatives volume and Bybit holding 15%. Despite these setbacks, Binance remains the largest crypto exchange by daily trading volume. However, its regulatory struggles may continue to impact its ability to expand and maintain its lead in the global crypto market. Source: Decrypt
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