U.Today - Binance, the leading cryptocurrency exchange, has observed its spot market share fall consecutively for seven months. The crypto giant now accounts for a mere 34% of the market, according to a recent that cites CCData.
The key reasons behind the decline
Last year, in a strategic move to expand its customer base and bolster trading volumes, Binance zero-fee trading for major cryptocurrencies like Bitcoin and Ethereum. The promotion, as reported by U.Today, allowed users to trade Ethereum against Binance’s native stablecoin, Binance USD (BUSD), without any fees for a limited time.However, the termination of such promotions for key trading pairs has reportedly influenced a portion of their user base to migrate elsewhere.
On top of this, looming legal challenges have intensified the decline. The Wall Street Journal recently that Changpeng Zhao (CZ), Binance's CEO, might face criminal charges from the U.S. Justice Department. This, combined with high-profile executive exits and significant layoffs at the company, has raised concerns about Binance's future market standing.
Dwindling trading volumes
Another glaring indicator of Binance’s recent struggles has been in its trading volumes.According to a report by K33 Research, Binance's 7-day average trading volume for Bitcoin witnessed a sharp decline of 57% since the onset of September.
In contrast, other exchanges have maintained relatively stable volumes, with U.S.-based even seeing a 9% surge over the same period.