Report: Binance spot market share declines for the seventh consecutive month

Author: Helen Partz, Cointelegraph; Translated by: Song Xue, Golden Finance

Major global cryptocurrency exchange Binance reportedly continues to lose its market share due to ongoing regulatory issues in the United States.

Bloomberg reported on October 5, citing analysis from cryptocurrency data provider CCData, that Binance’s spot market share fell for the seventh consecutive month in September 2023.

The report shows 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 year-to-date global spot market share percentage chart. Source: Bloomberg

In addition to the spot market, Binance is also losing market share in the derivatives market. The report shows that Binance's derivatives market share has dropped from 53.5% in August to 51.5% in September. In January, the exchange's market dominance in the derivatives market accounted for more than 62%.

Jacob Joseph, a research analyst at CCData, said that the regulatory challenges Binance faced in the United States were not the only reason why the exchange lost market share. The analyst attributed the decline to Binance’s discontinuation of its zero-fee trading promotions for major trading pairs.

As its market share has declined, Binance has also ended services in some major markets this year. In September, Binance announced its full exit from Russia, selling its entire local business to the newly established CommEx exchange (which was created by an undisclosed entity). Russia is one of Binance’s largest markets, with Russian visitors accounting for nearly 7% of the platform’s traffic.

Binance adjusted its trading fees in early September, re-imposing regular fees based on the user’s VIP level. For example, Binance began charging regular users 0.1% for spot and margin trading.

The report states that Binance lost spot trading volume above exchanges such as HTX, Bybit, and DigiFinex. Competitors such as OKX, Bybit, and Bitget have also reportedly expanded their derivatives market share.