Binance Spot Market Share Continues To Decline Seriously

Key Points:

• Binance spot market share keeps declining, reaching 34.3% in September amid low volatility and regulatory issues.
• US investigations and legal battles have led to senior departures and layoffs at Binance.
• Competitors are gaining ground, with HTX, Bybit, and DigiFinex absorbing spot trading volume.

According to Bloomberg, Binance, the world’s largest cryptocurrency exchange, has witnessed a persistent decline in its spot market share for the seventh consecutive month.

Binance Spot Market Share Continues to Slide

Binance spot market share dipped to 34.3% in September, down from 38.5% the previous month and significantly lower than its 55.2% share in January, according to data from CCData. In the derivatives market, Binance also faced a decline, with its market share falling to 51.5% from 53.5% in August.

The Wall Street Journal noted that Binance seemed to automatically assume the position of the largest cryptocurrency exchange following the collapse of FTX, which saw its founder, Sam Bankman-Fried, facing legal troubles. However, less than a year later, Binance, led by CEO Changpeng Zhao, is now confronting similar crisis risks.

Pressure Coming From US Regulatory Agencies

The pressure from the ongoing US investigation into the digital currency exchange has prompted several senior directors to leave the company over the past three months. Additionally, Binance has announced the layoffs of 1,500 employees in an effort to cut costs. Its recent decision to halt a zero-fee promotion also contributed to the decline of Binance spot market share.

The Binance spot market share has been absorbed by other exchanges such as HTX, Bybit, and DigiFinex. Meanwhile, rival exchanges like OKX, Bybit, and Bitget have managed to gain market share in the derivatives sector.

Binance is currently embroiled in legal battles with the US Commodity Futures Trading Commission and the Securities and Exchange Commission. Both agencies allege that it failed to register with American regulators and offered illegal securities. The exchange and its US operations are contesting these charges in court.

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