Binance the leading crypto exchange in the global crypto industry has witnessed its market share drop to a four-year low. Binance Market dominance has hit a 4 year low following regulatory and legal hurdles
According to reports from digital asset data provider CCData, Binance Market dominance is currently at levels last witnessed in 2020.
This drop in market share by Binance is directly tied to the numerous regulatory and legal hurdles the exchange is facing in various jurisdictions.
These regulatory and legal hurdles faced by Binance have led to the exchange ceding market share to its closest competitors like OKX and Bybit.
The CC Data report outlined the numbers revealing Binance’s declining market share in recent times while also touching on global trading volumes.
Numbers
The CCData report revealed that Binance processed 36.6% of the volume for Spot and Derivatives trading on centralized trading platforms. This number is roughly 22% more than OKX its closest rival.
On the spot trading volume metrics, Binance’s spot trading volume dipped by more than 20% last month leaving the exchange with a meager 27% share of the spot market.
On the derivatives trading volume metrics, Binance held nearly 41% market share in September. This number is due to a more than 20% decline in derivatives trading on its platform.
The next most popular crypto exchanges for derivatives trading are OKX and BYBIT which held 18.4% and 15.3% market shares, respectively
The new numbers from CC data revealed that Binance’s market dominance is currently at its lowest level since 2020.
It is also to be noted that the drop in market share for Binance is at par with a wider drop in spot and derivatives trading on crypto exchanges.
Global Spot and derivatives trading volumes fell to $4.3 trillion in September, down 17% from the previous month.
Binance’s Regulatory Hurdles
Binance market dominance drop can be directly linked to its numerous legal and regulatory troubles across various jurisdictions
Binance over the years has been involved in legal and regulatory tussles with Nigeria, India, Brazil, and the United States.
In the Netherlands and Germany Binance exited the markets due to inadequate licensing to enable full operations.
Binance is responding to all these legal tussles by increasing their workforce, especially in areas of compliance.