Binance Trading Volume in Market Shares Falls to Lowest Level Since 2020

Key Points:

• Binance trading volume in market share fell to its lowest in four years, amid regulatory challenges and increased global scrutiny.
• While Binance’s trading volumes declined sharply, smaller exchanges like Bybit and Crypto.com gained market share.

Binance, the world’s biggest cryptocurrency exchange, continues to test under adversity as its market share in the digital asset sector fell in September to the lowest in four years.

Read more: Binance in Argentina Now Supports Services for Local Users 

Binance Trading Volume Faces Lowest Market Share in Four Years

CCData reports that the exchange’s share of the estimated $2 trillion market has declined from 42.7% at the beginning of 2023 to 36.6%. Binance trading volume in the spot market has reached just 27%, the lowest since January 2021. Its derivatives market share is now 40.7%, the lowest in four years.

Combined with the ongoing struggle of Binance to find its way through the existing global regulatory scrutiny, it has lost its market share. Since March 2023, the exchange has been under increased regulatory pressure from around the world and is thus losing its dominance.

Under a deal in 2023, Binance had agreed to settle charges with the U.S. Justice Department along with other agencies over charges that included accusations of sanctions violations. The exchange came with a $4 billion fine. Its founder, Changpeng Zhao, resigned and spent time in jail briefly.

Smaller Crypto Exchanges Gain as Binance Stumbles

Overall, cryptocurrency trading volume fell by a wide margin last September, with total spot and derivatives volumes for all centralized exchanges coming in 17% below their prior-month totals. Binance suffered the largest loss among the top exchanges, while smaller operators like Bybit, Bitget, and Crypto.com managed to capture larger slices of the market share.

Despite the setbacks, Binance trading volume last month cruised past $100 trillion in lifespan. Indeed, according to various experts, there is a likelihood of increased liquidity and higher prices of assets in the upcoming months amid probable rate cuts by the U.S. Federal Reserve and the approaching presidential election.