Binance’s spot market share fell for a seventh consecutive month as a dearth in volatility and lingering regulatory woes weighed on the largest cryptocurrency exchange.
The trading platform’s spot market share dropped to 34.3% in September from 38.5% the previous month, according to data compiled by researcher CCData. It was 55.2% in January. In derivatives, its market share fell to 51.5% from 53.5% in August, and 62.6% in January.
Last month Binance halted another zero-fee promotion that had helped to boost trading activity. The exchange is also embroiled in lawsuits by the US Commodity Futures Trading Commission and the Securities and Exchange Commission, which alleged that the platform didn’t register with American regulators and offered illegal securities. Binance, Changpeng Zhao, the founder and head of the exchange, and its US operations, are fighting the charges in court.
Binance, which says it operates as a virtual company, didn’t immediately respond to a request for comment.
“The halting of zero-fee trading promotion for popular trading pairs, combined with the concerns around the regulatory scrutiny on the exchange has contributed to this decline,” said Jacob Joseph, a research analyst at CCData. The spot trading volume Binance lost went to exchanges such as HTX, Bybit and DigiFinex, the researcher said. Rival exchanges OKX, Bybit and Bitget picked up market share in derivatives, CCData said.
