Digital asset data provider CCData said cryptocurrency exchange Binance's market share continues to shrink and is now at its lowest point in nearly four years as the business faces global regulatory headwinds.
According to a report released by CCData on October 3, Binance’s spot trading volume dropped by more than 20% monthly in September, bringing the exchange’s share of the cryptocurrency spot market to 27%, the lowest since January 2021. level.
At the same time, Binance’s derivatives trading volume also fell by 21% in September, and its market share shrank to 40.7%, hitting its lowest level since September 2020.
In terms of overall performance, Binance’s total market share of spot and derivatives trading volume fell to 36.6% in September, down from 42.7% at the beginning of the year, the worst performance since September 2020.
CCData pointed out that one of the beneficiaries of the decline in Binance’s market share is Crypto.com. The latter’s spot and derivatives trading volume increased by more than 40% compared with the previous quarter. It has grown rapidly in the spot market since this year, and its market share has increased. to 10.5%.
The report noted that trading activity in the overall cryptocurrency market decreased last month, with both derivatives and spot trading volumes falling by 17%.
Analysts at CCData said that historically, September marks the end of the "weak trading season" and it is expected that market activity will gradually pick up in the fourth quarter:
Trading activity on centralized exchanges is expected to pick up in the coming months, driven by catalysts such as interest rate cuts by the Federal Reserve (Fed) and increased market liquidity following the U.S. election.
Binance’s diminishing market dominance comes amid an increasingly tough regulatory environment for cryptocurrency exchanges.
The U.S. Securities and Exchange Commission (SEC) filed an amended complaint against Binance last month, focusing on the exchange’s currency listing mechanism. This is a follow-up to a lawsuit filed by the U.S. SEC against Binance in June 2023, which accused Binance of operating as an unregistered broker, clearing house, and trading venue and offering unregistered securities.
"CCData Report: Binance's market share hit a 4-year low, and spot trading volume fell by more than 20% monthly." This article was first published on (Block Guest).