Cryptocurrency Exchange Binance Has Lost Market Share Since Ending Zero Free Bitcoins, New Data Shows trading.
A report published by CCData in mid-May showed that the exchange's market share fell for the second month in a row in April, falling to 46.3 percent. This is Binance's lowest market share since October 2022.
The drop comes after Binance decided to end its zero-fee promotion for most BTC trading pairs. Cointelegraph spoke to a Binance representative who said:
“We predict that market share will decline once we end our zero-fee BTC trading promotion for most trading pairs. This is not our concern. We will continue to have strong financial performance.” The spokesperson added that Binance now aims to cater to users needs with new and existing products, while “continuing to invest in compliance processes to usher in a new era of regulatory certainty.”
Previously, Binance controlled more than half of the market, with some figures showing its share as high as 57.5%. Additionally, the report noted that Binance's spot trading volume fell by 48.1% to $287 billion in April. While the second-largest exchanges, Coinbase and OKX, account for only 5.60% and 5.39% of the total spot trading market, respectively, smaller exchanges are gaining some momentum. For example, Upbit had a 4.77% market share as of April, compared to 2.81% at the start of 2023.
A Binance spokesperson told Cointelegraph that the exchange sees competition as a positive in the space. “Binance welcomes and encourages competition. It drives innovation and is good for the industry.” These developments come as Binance undertakes other changes in its operations .On May 12 , the company announced its decision to end operations in Canada, citing the new rules.
Reports began to surface shortly after that it planned to cut its workforce by 20% in June, contradicting the company's previous statement that it had no plans to cut any jobs.
