Binance US Branch Shares Rise 24% Despite CFTC Targeting The Exchange 

Key Points:

• Binance’s spot market share falls in the first quarter of 2023, while Binance US grows by more than 24%.
• It is also claimed that the loss was caused by the exchange’s choice to discontinue its zero-fee trading program.

According to a recent estimate, Binance lost 16% of its market dominance in the first quarter of 2023.

According to the story, the drop was caused by the CFTC lawsuit and the firm’s choice to discontinue its free trading program. While Coinbase’s shares have dropped nearly 49%, Binance US shares have increased 24%.

The top cryptocurrency exchange has lost nearly 16% of its market share of transaction activity in the two weeks following the CFTC’s case against the exchange. It is also claimed that the loss was caused by the exchange’s choice to discontinue its zero-fee trading program.

The US Commodity Futures Trading Commission (CFTC) accused this platform and its CEO Changpeng Zhao of engaging in financial operations without appropriate registration since 2019. The platform also stated that, while Binance remains one of the biggest platforms in the world, with a 54% market share, it experienced a significant drop in market share in the first quarter of 2023.

Following the story, Chinese reporter Collin Wu posted a message on his official Twitter page Wu blockchain mentioning the exchange’s loss: According to Kaiko, after the CFTC launched a lawsuit and the firm discontinued most zero-fee operations, Binance lost 16% of its spot market share to 54%, but only lost about 2% of its perpetual contract market share.

Significantly, the reporter stated that the exchange only lost about 2% market share in the perpetual contract market after the CFTC filed a lawsuit and Binance stopped most zero-fee activities, adding: After the CFTC filed a lawsuit and the platform 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 company Coinbase saw a significant decrease in its market share, falling from a weekly average of 60% to 49%. Despite the litigation, Binance’s US wing, Binance US, experienced a remarkable rise, with its market share more than tripling from 8% to more than 24%.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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