- Binance lost 16% market shares in the first quarter of 2023, according to a recent report.
- The report stated that the fall resulted from the CFTC lawsuit and the firm’s decision to end its free trading program.
- While Coinbase’s shares have fallen almost to 49%, Binance US shares surged 24%.
A recent report indicated that the leading crypto exchange Binance has lost almost 16% market share of trade volume over the past two weeks, subsequent to CFTC’s lawsuit against the exchange. It is also reported that the loss has also been a result of the exchange’s decision to end its zero-fee trading program.
The previous week, the United States Commodity Futures Trading Commission (CFTC) alleged that Binance and its CEO Changpeng Zhao have been performing financial activities without proper registration since 2019.
Notably, as per the details issued by the crypto market data provider Kaiko, the banking crisis and ongoing regulatory crackdown have upended the crypto market structure, leaving an uncertain dynamic among the world’s largest exchanges.
The platform added that though Binance remains one of the largest exchanges in the world with 54% dominance, it exhibited a substantial fall in its market share in the first quarter of 2023.
Following the report, the Chinese reporter Collin Wu, on his official Twitter page Wu blockchain shared a thread citing the loss of Binance:
Significantly, the reporter stated that Binance lost only about 2% market share in the perpetual contract market, adding:
After the CFTC filed a lawsuit and Binance stopped most zero-fee activities, Binance lost 16% of its spot market share to 54%, and only lost about 2% market share in the perpetual contract market.
Similarly, the crypto firm Coinbase had also viewed a major drop in its market share showing a decline from a weekly average of 60% to just 49%. Nonetheless, the US wing of Binance, Binance US, despite the lawsuit, had a remarkable surge, with its market share tripled to more than 24% from the previous 8%.
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