Binance's market share dropped from 55% to 34%

11 Oct, 2023

In 2023, Binance is seeing the worst performance among major crypto exchanges. Its market share declined to 34% in the spot trading market, and its September turnover dropped to $115 billion. This is the lowest figure since October 2020.

The decline is accelerating. In September alone, its share of spot trading dropped by 4.2%. October might bring even worse results since Binance announced it's leaving Russia on 27 September. Russians provided 7% of the platform's global traffic.

Services for BUSD stablecoin loans will be halted in October. This is a step towards withdrawing support for the coin in February 2024. The volume of BUSD trading on crypto exchanges collapsed in September by 47% to $15.8 billion, and the coin's market capitalisation has dropped from $16.6 billion to $2.5 billion in a year.

Regulatory pressure is to blame for the rejection of BUSD and the decline in market share. The issuer of the Paxos stablecoin was presented with a pre-enforcement action notification, after which the company refused to work with Binance. Support for the Paxos coin expires in February 2024, as well. The SEC filed a lawsuit against the crypto exchange, accusing it of financial fraud and violating securities law. A number of regulators around the world have either refused to issue a new license or revoked the current one. American media predict that the US Department of Justice will soon bring an indictment.

The wave of problems negatively affected BNB, the crypto exchange's native coin, which is down 15% in 2023.

The crypto exchange has lost a significant share in the spot market, but it holds an impressive 51.5% in the derivatives trading market. It also became the first licensed platform in El Salvador, where Bitcoin is recognised as legal tender. If the disagreements with the US Department of Justice can be resolved before the trial begins and the SEC cannot prove a violation of securities law, Binance will have a chance to regain the ground it lost.

StormGain Analytical Group
(platform for trading, exchanging and storing cryptocurrency)