Binance market share dropped by a quarter since February

Cryptocurrency exchange Binance has shed a quarter of its market share since February, amid US regulatory crackdowns and the end of free trading promotions.

Binance controlled 57.5% of average monthly volume on global crypto exchanges in February. As of May 31, its market share has dropped to 43%, Financial Times (FT) reports.

When New York regulators nixed BUSD issuance in February, it affected Binance’s liquidity. At the time, BUSD accounted for about 40% of the company’s monthly trading volume. In March, things got worse: the Commodity Futures Trading Commission (CFTC) issued a lawsuit claiming that Binance has its own unregistered trading operation through its “quant desk.”

That same month a trading promotion ended, adding to a decline in market share. Binance offered users free trading in several bitcoin pairs that led to a surge at the end of last year. “Once those ended, trading volume naturally went down and that obviously impacts their short-term share of the market share,” Ilan Solot, co-head of digital assets at Marex, told FT.

Since Binance removed zero-fee trading for USDT at the end of March, its market share decreased 10.8% as of May 20, according to CCData.

Meanwhile, other crypto exchanges are seeing a growth in market share. In the same time period, Bullish, OKX, BitMEX, and Bybit grew the most — 1.55%, 1.44%, 1.25%, and 1.04%, respectively.

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