Binance.US market share in the United States falls to a record low

Binance.US’s share of the U.S. bitcoin-exchange market fell to 2.7%, the lowest since December 2020, according to data from analytics service Kaiko.

https://t.co/pup2WYms9R market share relative to its US competitors declined to 2.7%, its lowest level since Dec 2020. pic.twitter.com/CGxFqRB9xP

— Kaiko (@KaikoData) June 14, 2023

On June 5, the SEC filed suit against Binance and its CEO Changpeng Zhao. The regulator brought 13 charges, including alleged sales of unregistered securities. Later the agency sought the court for an emergency freezing of Binance.US assets.

According to The Block, trading volumes of the exchange’s U.S. unit fell over the past three months—from $17.6 million in March to $3.5 million in May.

Nearly all USD-enabled crypto exchanges outpaced Binance.US in turnover. In April the platform accounted for 16.1% of spot trading volume, but in May the figure fell to 8.5%. At the time of writing it stood at 5.4%.

For comparison, the Coinbase figure, on which the SEC also filed suit, has hardly moved, hovering between 36% and 39% over the last three months.

According to Kaiko, after the filing of the suit, market depth for 25 leading crypto assets on Binance.US fell by 78%. Experts said that the platform lost many major market makers, including Wintermute and Keyrock.

Earlier Binance.US announced a suspension of dollar deposits from June 13.

On June 8, the U.S. subsidiary of Binance removed 10 trading pairs tied to Bitcoin and its own stablecoin, BUSD, and also suspended over-the-counter trading.