Report: Binance's "market share fell below 47%" hit a new low after FTX collapsed! Spokesperson: Due to the end of BTC transaction zero handling fee

This article is machine translated
Show original

Cryptocurrency exchange giant Binance (Binance) continued to increase its market share after the collapse of its competitor FTX, with a market share as high as 66.7% in 2022 . However, a report from CCData yesterday (2nd) showed that Binance’s market share fell to 46.3% in April, the lowest level in nearly eight months.

The trading volume of centralized exchanges has shrunk, and Binance's market share has continued to decline

CCData's report first analyzed the status quo of the entire CEX (centralized exchange) market. In April 2023, the spot and Derivatives trading volume of CEX dropped by 27.9% to US$277 million, which was the first month-on-month decline in trading volume this year, setting a record The lowest level since December 2022. During the same period, mainstream cryptocurrency assets led by Bitcoin continued to fluctuate in shock ranges below key resistance levels.

Trading volume on centralized exchanges shrank in April. Source: CCData

Based on the background of the overall market slump, the current situation of Binance, the current leader in the exchange field, is not optimistic. In April, the spot trading volume of Binance fell by as much as 48.1% to 287 billion US dollars, the second lowest since 2021 of monthly transactions. This downward trend is also reflected in the market share, Binance's market share fell for two consecutive months to 46.3%, the lowest market share since October 2022.

Nevertheless, CCData pointed out that Binance’s leading position is still a long way from being threatened, with the second largest exchanges Coinbase and OKX having 5.6% and 5.39% market shares of spot trading volume in April.

In terms of the Derivatives, Binance's total trading volume in April was US$1.32 trillion, ranking first with a market share of 61.4%. OKX and Bybit ranked second and third, with market shares of 15.0% and 14.6% respectively.

Further reading: Newsletter Binance began to lay off staff! It is rumored that 20% of employees will be laid off, and the compensation varies from region to region

Binance’s market share in the spot market fell to 46.3%, but it still remains the leading centralized exchange. Source: CCData

Binance: The decline is due to the end of BTC trading pairs with zero fees

Trading volumes on Binance have declined markedly for two straight months as it faces heightened business competition, U.S. regulators scrutinize its activities and after a zero-fee promotion ends.

A representative of Binance also responded to Cointelegraph regarding the decline in market share, saying that the decline in market share was expected, and pointed out that financial performance is the indicator that Binance is most concerned about:

We predict that market share will drop once we end our zero-fee promotion for most BTC trading pairs.

That's not our concern, and we'll continue to deliver strong financial results.

Source
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
Like
Add to Favorites
Comments