Binance, the largest cryptocurrency exchange in the world, and its U.S. subsidiary have seen a reduction in their market share this year due to the assault of regulatory crackdowns they have been subjected to.
According to data provided by Kaiko, the cryptocurrency exchange Binance saw its share of the worldwide market drop from 60 percent at the beginning of the year to 52 percent after being served with a lawsuit by the United States Securities and Exchange Commission (SEC) for allegedly violating the regulations of the regulator.
According to Dessislava Aubert, an analyst at Kaiko, Binance started losing market share in March after it decided to stop offering zero-fee transactions for several different trading pairs.
“Binance’s market share has gone to a variety of exchanges, with Bybit and OKX faring the best,” stated Aubert.
Binance.After the exchange offered its customers a deadline of June 13 to remove their dollar funds amid the SEC asking a court to freeze its assets, the US, the ostensibly independent partner of Binance, has seen its share of the U.S. market fall to 0.9% on June 26 from over 22% in April. This comes after the exchange allowed its users to withdraw their cash in Bitcoin instead of dollars.
According to Aubert, contrary to the general trend, Coinbase’s market share in the United States increased to 55.5% in June, up from 48.4% the previous month. This increase resulted from the exchange being identified as a surveillance partner by Fidelity and other asset managers in the filing for a spot bitcoin ETF.
Crypto firms disagree with classifying crypto tokens as securities and have repeatedly demanded that the SEC establish transparent guidelines.
Even though bitcoin surged towards the end of the quarter to achieve a one-year peak of $31,458, as a series of proposals from big asset managers, including BlackRock, improved sentiment, overall spot trading volumes fell to their lowest level since 2020 in the second quarter, according to Kaiko. This was even though trade volumes fell to the lowest level since 2020.
