Binance’s Market Dominance Plummets To 30% Amid Regulatory Challenges In 2023

2 views 7:38 am 0 Comments December 19, 2023

In a notable development, the world’s leading cryptocurrency exchange, Binance, observed a significant dip in its market share in 2023, down to 30%.

What Happened: As per a report by CoinDesk, regulatory hurdles and top-level exits contributed to Binance’s market share falling from 55% at the year’s commencement to 30.1% by December.

CCData’s findings show that Binance’s monthly spot volumes saw a drastic reduction of over 70%, moving from $474 billion to $114 billion between January and September.

Following a legal dispute with the Commodity Futures Trading Commission (CFTC), the company and its erstwhile CEO, Changpeng “CZ” Zhao, consented to a nearly $3 billion settlement in November. This followed separate settlements with the Department of Justice and the Treasury Department.

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Why It Matters: Even with the slump, Binance continues to be the largest cryptocurrency exchange by a considerable margin. The runner-up, Seychelles-based OKX, commands an 8% market share as of December, a significant increase from 4% at the start of the year.

Taking into account both spot and derivatives trading, Binance’s market share slipped to 42% from 60%, while OKX’s surged to 21% from 9%, according to CCData.

Price Action: At the time of writing, Bitcoin BTC/USD was trading at $41,564, down 0.51% in the last 24 hours, according to Benzinga Pro. 

Photo by Primakov on Shutterstock

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