Binance’s Market Share Hits Four-Year Low

Binance’s share of the total trading volume in the spot and derivatives markets within the centralized cryptocurrency exchange segment has fallen to 36.6%, according to a report by CCData.

This figure marks the platform’s lowest since September 2020.

Last month, Binance’s spot trading volume decreased by 23% compared to August, reducing the exchange’s share to 27%. For derivatives products, the decline was 21%, leaving the platform with 40.7% of the total in the CEX segment.

Crypto.com emerged as one of the beneficiaries of Binance’s declining volumes. Its overall figure increased by more than 40% month-on-month. Since the beginning of the year, the exchange has recorded the largest growth in spot trading, raising its market share to 10.5%.

In September, total trading volumes in the segment fell by 17% to $4.34 trillion, marking the lowest level since June.

Analysts noted that the first month of autumn traditionally signals the end of the low trading activity season.

“With catalysts such as increased market liquidity following the Fed‘s interest rate cut and the upcoming US elections, activity on centralized exchanges is expected to rise in the coming months,” CCData predicted.

On September 27, Binance co-founder and former CEO Changpeng Zhao (CZ) was released after serving a four-month sentence, which the court imposed in April. Earlier in the month, the company permanently barred CZ from management.

In one of his first tweets after his release, Zhao noted that “the exchange seems to be managing without his involvement.”

In November 2023, Binance settled claims with the US Department of Justice, agreeing to pay $4.3 billion. CZ’s personal fine amounted to $50 million.

The lawsuit by the SEC against the exchange is ongoing.