Binance the largest crypto exchange in the world has witnessed its market share shrink to a 4-year low following various regulatory hurdles in different jurisdictions.
Binance according to a recent report appears to be losing its lead over its close competitors as the exchange continues to cede market share to close rivals.
According to an October 3 report by digital asset data provider CCData.. Binance processed 36.6% of the volume for Spot and Derivatives trading on centralized trading platforms roughly 22% more than OKX its closest rival.
Binance spot trading volume dipped by more than 20% last month leaving with a meager 27% share of the spot market.
These new numbers on trading volumes and market share marked the lowest level of Market Dominance for Binance since 2020.
In derivatives trading volumes, Binance held nearly 41% market share in September. This number is due to a more than 20% decline in derivatives trading on its platform.
Compared to other crypto exchanges, the next most popular crypto exchanges for derivatives trading are OKX and BYBIT which held 18.4% and 15.3% market shares, respectively.
The drop in market share for Binance tallies with a broader shrinking of spot and derivatives trading on centralized crypto exchanges.
Spot and derivatives trading volumes fell to $4.3 trillion in September, down 17% from the previous month.
Binance’s falling status and legal issues
Binance falling status as the major market force in the exchange business can be directly tied to its numerous litigations with various jurisdictions around the world.
Binance has been embroiled in major legal tussles with Nigeria, India, Brazil, and the United States in areas of compliance and anti-money laundering.
In Nigeria, Africa’s largest crypto market, A Binance executive has been detained for 7 months over charges of Money laundering and Tax evasion.
In India, Binance was forced to pay a fine, and a spat with the United States DOJ led to a four-month incarceration of former CEO Changpeng Zhao.
Last year Binance had to leave the Dutch and German markets over inadequate licensing to enable full operations in the jurisdictions.
Binance legal tussles are obviously taking a toll on its global market share as revealed by the CC data report. it remains to be seen how the Giant exchange will react.
What to Know
- Binance in response to its multiple legal hurdles plans on expanding its workforce, especially in areas of compliance.
- Binance was forced to delist its naira P2P following accusations by Nigerian authorities of currency manipulation.
