According to data from research firm CCData, the world's largest cryptocurrency exchange Binance's total market share of trading volume in the digital asset market with a market capitalization of approximately US$2 trillion fell to its lowest level in four years in September, from the beginning of the year. 42.7% shrunk to 36.6% at the end of last month.

Data shows that Binance’s market share in the spot market is 27%, the lowest since January 2021, while its market share in derivatives trading is 40.7%, also the lowest in four years.

Binance’s market share has continued to decline since March 2023 as it has grappled with regulatory actions and increasing scrutiny around the world. Last year, Binance reached a settlement with the U.S. Department of Justice and several other agencies over sanctions violations and other charges, and agreed to pay more than $4 billion in fines. Its co-founder and then-CEO Changpeng Zhao (CZ) resigned and served four months in prison. (Released from prison). Binance’s new CEO, Richard Teng, is a former regulator who has been focused on conversations with regulators around the world scrutinizing Binance.

September is a typically seasonally weak month in terms of trading markets. According to CCData, the spot and derivatives trading volume of all centralized exchanges fell by 17% in September, hitting the lowest monthly trading activity level since June. Among them, Binance’s market share fell last month The most serious.

Percent change in market share of each centralized exchange year to date (Source: CCData)

Data from CCData shows that several smaller centralized competitors like Bybit, Bitget and Crypto.com have recently gained more market share. Jacob Joseph, senior research analyst at CCData, said:

“This trend may reflect cryptocurrency participants’ growing confidence in other platforms that offer comparable user experiences with low transaction fees, minimal slippage and high market liquidity.”

Earlier this month, Binance became the first centralized cryptocurrency exchange to surpass $100 trillion in historical trading volume, CCData said.

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