The market share of the cryptocurrency exchange Binance approached a year's minimum

The market share of the cryptocurrency exchange Binance approached a year's minimum

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Author: Robert Strickland (crypto-journalist)
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The market share of the cryptocurrency exchange Binance approached a year's minimum
The exchange remains the world's largest in terms of trading volume, but lawsuits by U.S. regulators and competitors are negatively affecting its market reach

According to analysts' calculations, Binance's spot market share was 56% as of June 19, not much different from the previous two months. However, this is the lowest figure since last August (53.7%).

Binance.US, a separate U.S. unit of Binance, lost nearly all of its market share after the lawsuits from the CFTC and SEC, Kaiko noted.

The market share of the exchange was also affected by the cancellation of shares with zero trading commissions in pairs with popular stablecoins, except for TrueUSD (TUSD). Because of the active promotion by Binance and the lack of commissions in trading pairs with TUSD, the stablecoin now represents the largest asset in terms of trading volumes on exchanges in pairs with Bitcoin, according to CoinMarketCap. According to Binance wallet information compiled by analytics company Arkham Intelligence, the exchange owns more than 90% of all TUSD in turnover.

Binance's overall market share fell to 47% on April 6, just after a separate claim from the U.S. Commodity Futures Trading Commission (CFTC). Pressure on crypto exchanges also increased after BlackRock and other big players in the traditional financial market began filing for spot exchange-traded funds (ETFs) for bitcoin, seeking to attract investors looking for regulated institutions.

"Centralized exchanges could find themselves caught in a vise between decentralized services and traditional financial players entering the market," Alex Swanewick, head of crypto analytics firm Nansen, wrote in a commentary for Bloomberg.

Analysts also calculated market shares for other crypto exchanges. In addition to Binance, the top three included Coinbase and OKX (6.8% each), Kraken, Huobi, a group of Korean exchanges, and another group of 16 crypto exchanges (KuCoin, Bybit, Bitfinex, Hitbtc, Bitstamp, Bittrex, and others), which together account for 16% of trading in the crypto market.

Coinbase, the largest U.S. cryptocurrency exchange, which is also being sued by the SEC, reduced its market share to 6.8% in June. According to DefiLlama, Binance is also the largest holder of customer crypto-assets, with $59.2 billion in reserves.

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