Binance End Zero-Fee Trading Pushing 16% Drop in Market Share

Over the last month, crypto exchange Binance has come under regulatory fire with the US Commodities and Futures Trading Commission (CFTC) slapping a lawsuit for alleged violation of the derivatives regulations.

This has put a massive dent in Binance’s crypto market dominance as the exchange’s market share dropped by 16% within a week’s time. However, blockchain analytics firm Kaiko explains that the end of zero-fee trading by Binance has done more damage than the CFTC lawsuit.

Although Binance seems to be losing 16% market share in spot volumes, it has lost only 2% market share for perpetual futures trade volume. Thus, Kaiko notes that the major reason behind Binance losing the market share was the end of the zero-fee spot trading instead of the regulatory action.

As we know, Binance gained significant market share even since the collapse of the crypto exchange FTX. After November 2022, Binance’s market share jumped from 50% to 65%.

Binance’s CZ to Face Interpol Notice?

On Monday, April 3, a rumor circulated in the crypto market that Binance chief Changpeng Zhao could be facing an “Interpol Red Notice” as per a tweet from @cobie, well-followed by the crypto community.

This rumor was enough to send tremors across the crypto space with BNB Coin and BTC coming under immediate corrections. However, @cobi’es tweet was an encrypted message with SHA-256 hash function, the same cryptography that secures other digital assets including Bitcoin.

However, Binance Chief Strategy Officer Patrick Hillmann issued a clarification in his tweet adding that the rumor isn’t true. He wrote: “One of two things is true: 1. It’s bullsh-t 2. A law enforcement agent is illegally leaking elements of a case file. My bet is #1.”

Crypto exchange Binance has been at the crossroads of a strong regulatory action recently in the US. But Binance is not alone in facing the heat. Other major competitors like Coinbase have also faced a similar regulatory action in recent weeks.