According to CCData, Binance also decreased its participation in the derivatives market.
Other exchanges are taking a greater role in the market.
In September 2024, Binance’s market share fell noticeably, reaching its lowest point since 2020. According to data from CCData, this decline is reflected in both the spot and derivatives markets, marking a significant change in the overview of the largest cryptocurrency exchange in the world.
Binance spot trading volume decreased by 22.9%, positioning at USD 344,000 million, which represents the lowest level since November 2023. This has left Binance’s share of the spot market at 27%, the lowest since January 2021.
Simultaneously, derivatives trading volume also took a hit, dropping 21% to $1.25 trillion, the lowest since October 2023. Binance’s market share in derivatives is now 40.7%, its lowest level since September 2020.
In the combined spot and derivatives markets, Binance’s overall share has dropped to 36.6%, also the lowest since September 2020. This decline is attributed to a number of factors, including increased competition and regulatory scrutiny.
In contrast, other cryptocurrency exchanges are gaining ground. Crypto.com, for example, has seen both its spot and derivatives volumes increase by 40.2% and 42.8%, respectively, reaching $134 billion and $149 billion. This growth has raised its combined market share to 11% in September, consolidating it as the fourth largest centralized exchange by volumes, according to CCData data. Bybit and Bitget also show growth.
Losing ground
Data from CCData suggests that Binance is losing ground since last year, mainly due to intensified regulatory scrutiny in the United States. This scrutiny culminated in the largest fine ever imposed by the US on a cryptocurrency company, valued at more than $4 billion, as reported by CriptoNoticias.
The regulatory persecution of Binance in the United States also led to the departure of Changpeng Zhao from the management of the exchange, who in addition to paying fines, served a four-month prison sentence.
Regulatory scrutiny affects market share in several ways. First, reduces the confidence of investors and usersleading to a decrease in trading volume. Second, the costs associated with regulation and fines could impact the exchange’s services and fees.
The drop in Binance market share to 37% It is an indicator of the challenges facing the company in an increasingly competitive and regulated market. While Binance seeks to navigate the situation, other exchanges such as Crypto.com are taking advantage of this opportunity to increase their presence and popularity in the market.
This article was created using artificial intelligence and edited by a human Editor.
