Binance's dominance in Bitcoin trading outside the US is fading as foreign exchanges expand their reach and the regulatory landscape evolves, reshaping the competitive dynamics of the digital asset industry .
According to data from Kaiko, Binance, which once dominated the Bitcoin trading market outside the US, has seen its BTC trading share decline over the past year, falling from 81.3% to 55.3%. .
Binance lost global market share
Similarly, Binance's ratio has decreased from 58% to 50.5% for smaller Token and altcoins. Kaiko attributed these changes to Binance discontinuing the large-scale free Bitcoin trading promotion it implemented last year.
Smaller exchanges such as Bybit and OKX have gained momentum as volume recover, leading to less concentration in foreign markets.
Over the past year, Bybit 's share of global Bitcoin trading outside the US increased from 2% to 9.3%, while OKX 's market share increased to 7.3% from 3%.
The shift in market dynamics comes amid various developments in cryptocurrencies, including Bitcoin's fourth halving over the weekend.
Despite the predictions surrounding the event, its short-term impact remains mixed. Bitcoin has performed slightly better than previous halvings in the first few days, gaining more than 3% since the event. However, historical data shows that while the short-term impact may vary, the long-term trajectory remains bullish.
One notable development following the halving is the increase in transaction fees on the Bitcoin network. Medium network fees rose to an All-Time-High of $146, surpassing Ethereum's Medium fee of $3 on the same day.
Meanwhile, the funding rate for Bitcoin perpetual contracts remains neutral despite briefly falling into negative territory before the halving. However, open interest in these perpetual contracts remains high, exceeding $10 billion.
Binance's efforts to rebuild its reputation
While Bybit and OKX increase their presence in the Asian market, Binance is facing legal challenges. In November, company co-founder Changpeng Zhao pleaded guilty to violating US sanctions and anti-money laundering.
Binance, under the new leadership of Richard Teng, is currently working to improve its image amid scrutiny from US regulators. The exchange has implemented stricter Token listing criteria and established a Board of Directors as part of this effort.
Meanwhile, as geopolitical tensions escalate in the Middle East, demand for safe-haven assets has increased. Despite this, bitcoin has failed to attract significant Capital inflows. Its value fell 6% in April, while traditional safe-haven assets such as gold and the US dollar rose.
Kaiko explained that this could be due to the halving, which historically leads to increased short-term volatility. The report also acknowledges that several other factors influence Bitcoin's performance during major market events.
