Data from CCData last week showed that after a series of eight-month-long accusations and lawsuits came to an end, cryptocurrency exchange Binance has lost 70% of its monthly trading volume and its market share has dropped to 30%. On the other hand, OKX and Bybit have lost 70% of their monthly trading volume. It is the second and third runner-up and has also grown rapidly in the past year, with the total market share of spot and derivatives breaking a record high.
Binance trading volume lost 70% in one year
Since March and June this year, Binance has been involved in lawsuits from the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) respectively. The accusations include violating anti-money laundering, operating illegal derivatives exchanges, and illegally providing services to the American people. its services.
Coindesk cited data from CCdata and pointed out that Binance’s spot market share has experienced an unprecedented drop this year, from 55% at the beginning of this year to 30.1% in December; while the monthly spot trading volume has dropped from nearly $500 billion in January. It fell to US$114 billion in September, a loss of more than 70%.
Similar data also coincides with previous observations of Binance outflows after Nansen stepped down from CZ. It is reported that the company's assets have been impaired by US$1 billion after its settlement with the US Department of Justice.
However, CCdata also revealed that although Binance’s market share continues to decline, it is still the largest centralized exchange (CEX) currently and far ahead of other competitors.
OKX and Bybit are rushing to catch up
In addition, OKX and Bybit, the runner-up and third runner-up, have achieved significant market growth this year. The former's market share increased from only 4% at the beginning of the year to 8% in December.
Data show that , based on the trading volume of spot and derivatives, the monthly trading volume of almost all exchanges has shown a gradual increase trend in the past three months. However, Binance’s market share has dropped from 60% to 42% since this year, while OKX has grown from 9% to 20.2%, ranking second.
In addition, Bybit, which ranks third, accounts for 11.94% of the market share, which means that the combined market share of the two exceeds 32%, reaching a record high in total market share.
CCData commented on this because Binance’s recent lawsuit can be said to have come to an end, but Coinbase’s SEC case is still ongoing. The particularly eye-catching data from OKX and Bybit exchanges highlight the response and changes of the CEX market to the above-mentioned events, especially the obvious rising demand after September.
With executives leaving and CZ stepping down, what’s next for Binance?
Previously, Binance and its former CEO CZ reached a settlement in the lawsuit with the U.S. Commodity Futures Trading Commission (CFTC) by paying $4.3 billion last month, and also made separate settlements with the U.S. Department of Justice and the Treasury Department. .
In addition, Binance has also faced the resignation of more than 10 senior executives since this year, including regional heads, chief strategy officers, and multiple compliance and legal advisors. This was seen as a warning at the time and undoubtedly had a negative impact on the company. Binance’s personnel structure and stability are affected.
