Binance’s market share close to yearly low

Binance crypto exchange market share close to yearly low, reports RBC Crypto according to research firm Kaiko.

Analysts estimate that Binance’s spot market share was 56% as of June 19, which is little different from the previous two months. However, this is the lowest figure since August last year (53.7%). The world’s largest cryptocurrency exchange came under attack after the US Securities and Exchange Commission (SEC) filed a lawsuit on June 5 against the company and its founder, Changpeng Zhao.

Binance.US, a separate US division of Binance, lost almost all of its market share after lawsuits from the CFTC and SEC, Kaiko noted. The share of “global” Binance in trading on pairs with the euro also decreased, analysts say.

The exchange’s market share decline was also affected by the cancellation of the promotion with zero trading fees in pairs with popular stablecoins, except TrueUSD (TUSD). Due to strong promotion from Binance and the lack of fees on trading pairs with TUSD, stablecoin now represents the largest asset in terms of trading volume on exchanges paired with bitcoin, according to CoinMarketCap. According to Binance wallet information compiled by Arkham Intelligence, the exchange owns more than 90% of all TUSD in circulation.

Binance’s overall market share on April 6, immediately after a separate lawsuit from the US Commodity Futures Trading Commission (CFTC), fell to 47%. The pressure on crypto exchanges also intensified after BlackRock and other major players in the traditional financial market began applying for bitcoin spot exchange-traded funds (ETFs) in a bid to attract investors looking for regulated institutions.

Analysts also calculated market shares for other crypto exchanges. In addition to Binance, the top three included Coinbase and OKX (6.8% each), Kraken, Huobi, a group of Korean exchanges and another group of 16 crypto exchanges (KuCoin, Bybit, Bitfinex, Hitbtc, Bitstamp, Bittrex and others), on which collectively account for 16% of trading on the crypto market.

The largest US crypto exchange Coinbase, against which the SEC has also filed a lawsuit, reduced its market share to 6.8% in June. At the beginning of the year, the exchange occupied 7.6% of the global crypto assets trading market.

Even after losing market share for most of 2023, Binance remains the largest of all other cryptocurrency exchanges combined. This gives it an advantage by allowing it to offer deeper market liquidity and greater trading opportunities. Binance is also the largest holder of client-side crypto assets, with $59.2 billion in reserves, according to DefiLlama.