Over the past week, all 10 cryptocurrencies have returned double digits, yet the BNB token has only returned less than 1%.

The larger cryptocurrency market had a massive surge last week, rising 12% and adding more than $180 billion to its total market capitalization. While cryptocurrencies and Bitcoin as a whole took part in this rise, Binance’s BNB token completely missed the mark.

This takes place in the midst of Binance’s difficult situation as it continues to settle for $4.3 billion with US authorities. Almost all of the top 10 cryptocurrencies saw double-digit gains during the past week, but Binance’s BNB coin only saw returns of 1%.

Losing Market Share is Binance

This year has been difficult for Binance Coin (BNB), which is indicative of the exchange’s regulatory issues. According to Bloomberg, BNB — which is well-known for offering benefits like lower trading costs on the Binance platform — is the only significant cryptocurrency that has lost money thus far this year.

After pleading guilty to charges of money-laundering and sanctions violations on November 21, Binance’s regulatory problems in the US hit a critical juncture. This development highlights the increased regulatory scrutiny that the bitcoin exchange is subject to.

Even though Binance is a major player in the world of digital asset trading, its market share is decreasing. According to data from CCData, the platform’s percentage of spot trading volumes dropped from 55% at the start of 2023 to 32% in November. In the same way, its percentage of the futures market fell from over 60% to 48%.

Head of VanEck’s digital-assets research Matthew Sigel foresees a change in the market and believes Binance may lose its leading position in controlled exchanges. He lists rivals like Bitget, Coinbase, Bybit, OKX, and Bybit as possible entrants to overtake the top rank in light of Binance’s recent plea agreement with US authorities.

Changpeng Zhao, the founder of Binance, resigned as CEO after entering a guilty plea. After Zhao stepped down as CEO of Binance, Richard Teng took over. Teng faces the difficult task of reorganizing the business to handle regulatory obstacles and stop additional market share loss. Teng tried to exude optimism last month in an interview by saying that Binance’s earnings and sales are still strong.

Will XRP Rank Fourth Despite Significant Pressure BNB Token?

According to DefiLlama data, November saw the second-highest monthly capital outflow from Binance, with users taking out a net $1.6 billion. Nonetheless, there has been a partial reversal, with $398 million in net new money entering the market as of December 1.

After the guilty pleas and a massive sentence that exceeded $4 billion in the United States, BNB declined by 8%, making it one of the biggest penalties in American history. This performance is in contrast to the 14% growth over the same period in an index that tracks the top 100 digital assets.

The reason for BNB’s present underperformance, according to Clara Medalie, Director of Research at Kaiko, is that many view it as a stand-in for Binance.

The BNB coin is in danger of falling to fourth place due to its recent underperformance compared to Ripple’s XRP, whose price has increased by 67% year to date as a result of encouraging developments in the Ripple v. SEC case.

SOURCE:

https://medium.com/@therealcryptojk/will-xrp-takeover-after-binances-bnb-token-misses-out-on-the-180-billion-crypto-rally-e2e1c48db3e9