The leading global cryptocurrency exchange, Binance, has been undergoing a decline in market share for the seventh straight month in both spot and derivatives trading, as reported by Bloomberg.
In September 2023, Binance’s spot market share declined to 34.3% from 38.5% in August, and 55.2% in January. In the derivatives market, Binance’s share of market activity decreased from 53.5% in August to 51.5% in September, compared with over 62% in January.
The declines have been ascribed to a few factors among them being regulatory hitches in the United States and the terminations of Zero fees trading promotions by Binance for major pairs. This year Binance left some key markets, including Russia.
Due to declined market shares of Binance, exchanges such as Huobi-backed HTX, Bybit and DigiFinex witnessed increase in trading volumes. In the derivatives market, other competing exchanges like OKX, Bybit, and Bitget have also grabbed market share.
Despite the challenges, Binance remains the world’s largest cryptocurrency exchange. However, its market dominance is no longer as strong as it once was.
Binance’s declining market share is a sign of increasing competition in the crypto space. This fierce competition is good for consumers, as it gives them more options and drives down fees.