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Bitcoin (BTC) is currently trading at a premium exceeding 1% on Binance.US, as the exchange’s USD trading volume has fallen to unprecedented lows following the lawsuit from the U.S. SEC, according to data from CryptoCompare.
According to CryptoCompare data, BTC was priced above $26,000 on Binance.US, outpacing major competitors such as Kraken and Coinbase by over $150 at the time of reporting.
Source: CryptoCompare
Binance US trading volume declines
In spite of its BTC premium, the USD volume on the exchange has significantly decreased, falling from a high of over $684 million recorded on March 14 to below $25 million, as per CryptoCompare data.
This reduction is attributed to the decision by the exchange’s banking partners to cease USD payment channels by June 13. Consequently, Binance US announced it would shift to a crypto-only platform due to regulatory challenges.
Source: CryptoCompare
Further data from Kaiko supports the observation of decreasing trading activity on the exchange. Kaiko reported that Binance US’s market share, relative to other U.S. exchanges, fell to 4.8% following the lawsuit, down from 20% in April.
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Source: Kaiko
Conversely, Coinbase’s market share increased from 46% to 64% within a week of its own SEC lawsuit.
Binance US market depth decreases by 78%
Simultaneously, Binance US’s market depth declined by 78% within a week after the U.S. SEC filed a lawsuit against the company for breaching federal securities law, according to Kaiko data.
Source: Kaiko
Over the past week, Kaiko observed that the exchange’s market depth for 17 tokens fell to merely $7 million from the $34 million recorded on June 4 — the day prior to the SEC’s lawsuit.
Kaiko indicated that market makers and traders exited the exchange due to worries about potential asset lock-ups. On June 6, the SEC sought to freeze Binance’s U.S. assets, asserting that this measure was necessary to protect customers’ funds.
“[Binance US] market makers are nervous and want to avoid volatility-induced losses and the non-negligible possibility that their assets could get stuck on an exchange à la FTX collapse.”
The post Bitcoin trades at premium on Binance US as liquidity dries up appeared first on CryptoSlate.
