Binance Crypto Market Share Continues to Drop for 7th Month: Report

Binance Loses Market Share

Major global cryptocurrency exchange Binance has reportedly continued to experience a decline in its market share amid ongoing regulatory issues in the United States.

According to analysis from cryptocurrency data provider CCData, Binance’s spot market share fell for the seventh consecutive month in September 2023, as reported by Bloomberg on Oct. 5.

The report indicated that Binance’s spot market share dropped from 38.5% in August to 34.3% in September. This is a significant decrease from the 55.2% mark the exchange held in January 2023.

In addition to the spot market, Binance has also seen a decrease in its derivatives market share. The report showed that Binance’s derivatives market share tumbled from 53.5% in August to 51.5% in September, a decrease from the 62% mark it held in January.

Binance Loses Market Share

Jacob Joseph, a research analyst at CCData, believes that Binance’s drop in market share is due to more than just its regulatory woes in the U.S. Joseph believes that Binance’s decision to end its zero-fee trading promotion for major trading pairs has also had an effect.

In September, Binance announced it was exiting the Russian market, selling its entire local business to the newly launched CommEx exchange. Russia had been one of Binance’s biggest markets, with Russian visitors accounting for nearly 7% of the platform’s traffic.

To make up for the lost revenue, Binance introduced changes to its trading fees in early September, including a 0.1% taker fee for spot and margin trades from regular users. As a result, Binance’s lost spot trading volume has been distributed among exchanges like HTX (formerly Huobi), Bybit, DigiFinex, OKX, Bybit and Bitget, all of which have seen an increase in their market share in the derivatives market.