Binance Loses More Than 10% Market Share In First Half of 2023

• Binance has lost more than 10% of the crypto market share in the first half of 2023.
• The sinking market share has been blamed on regulatory crackdown and enforcement actions against Binance.
• The market share of Binance US slipped under 1% in Q2’23 following issues with the international crypto exchange.

Binance, the largest crypto exchange in the world, has seen its market share shrink by more than 10% in the first half of 2023. The crypto analytics firm Kaiko’s research showed that the crypto giant’s mounting legal woes paired with a crackdown from regulators around the globe have also made it difficult for associated entities like Binance US to maintain their hold on the American crypto market share.

As per the report released by Kaiko Research, Binance’s tanking market share has been blamed on the enforcement actions initiated against it by federal agencies in the United States, including the Commodities and Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

Data gathered by Kaiko Research showed that Binance’s decision to reinstate trading fees for BTC/USDT and BTC/BUSD spot pairs also contributed to the decline of the crypto exchange’s market share. Binance’s spot volume went from 64% to 53% since the beginning of the year. The lost market share was absorbed by rival crypto exchanges like OKX and Bybit.

Binance’s share of the derivatives volume has also taken a hit following the case filed against the crypto giant’s futures market by the United States CFTC. Binance US shared a similar fate, with its market share going from 22% in April 2023, to 0.9% on June 26, 2023. This was partly due to a spectacular bank run-like situation caused by a recent tussle with the SEC, with the latter looking to freeze Binance’s assets.

Binance CEO Changpeng Zhao is counting on an influx of trading activity to help with the plight of this crypto exchange. In a recent ask-me-anything (AMA) session on Twitter, Zhao cited historical patterns to project that the exchange would see heavy trading volume over the next 6 to 18 months.