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Binance’s share of the spot market declines for the seventh straight month, according to a report.
Prominent global cryptocurrency exchange Binance has allegedly continued to experience a decline in its market share amid persistent regulatory challenges in the United States.
Binance’s spot market share decreased for the seventh month in a row in September 2023, as reported by Bloomberg on Oct. 5, referencing analysis from cryptocurrency data provider CCData.
The report indicates that Binance’s spot market share fell from 38.5% in August to 34.3% in September. In January 2023, Binance’s spot market share was as high as 55.2%.
Binance’s global spot market share percentage chart year-to-date. Source: Bloomberg
In addition to the spot market, Binance has also been experiencing a decline in its derivatives market share. The report states that Binance’s derivatives market share fell from 53.5% in August to 51.5% in September. In January, the exchange held over 62% of the derivatives market.
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CCData research analyst Jacob Joseph noted that the regulatory issues in the U.S. are not the sole factor contributing to Binance’s market share decline. The analyst suggests that the reduction is also linked to Binance discontinuing its zero-fee trading promotion for significant trading pairs.
The decrease in Binance’s market share coincided with the exchange concluding operations in several of its key markets this year. In September, Binance revealed its complete withdrawal from Russia, selling its entire local business to the newly established CommEx exchange, created by undisclosed parties. Russia represented one of Binance’s largest markets, with Russian users making up nearly 7% of the platform’s traffic.
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In early September, Binance implemented modifications to its trading fees, reinstating a standard taker fee based on the user’s VIP status. For instance, Binance began imposing a 0.1% taker fee on spot and margin trades for regular users.
The report mentions that Binance’s lost spot trading volume has been redistributed among exchanges such as HTX (formerly Huobi), Bybit, and DigiFinex. Competing exchanges like OKX, Bybit, and Bitget have also reportedly gained market share in the derivatives sector.
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