Binance's Market Dominance Plummets To 30% Amid Regulatory Challenges In 2023
In a notable development, the world’s leading cryptocurrency exchange, Binance, observed a significant dip in its market share in 2023, down to 30%.
What Happened: As per a report by CoinDesk, regulatory hurdles and top-level exits contributed to Binance’s market share falling from 55% at the year’s commencement to 30.1% by December.
CCData’s findings show that Binance’s monthly spot volumes saw a drastic reduction of over 70%, moving from $474 billion to $114 billion between January and September.
Following a legal dispute with the Commodity Futures Trading Commission (CFTC), the company and its erstwhile CEO, Changpeng “CZ” Zhao, consented to a nearly $3 billion settlement in November. This followed separate settlements with the Department of Justice and the Treasury Department.
Why It Matters: Even with the slump, Binance continues to be the largest cryptocurrency exchange by a considerable margin. The runner-up, Seychelles-based OKX, commands an 8% market share as of December, a significant increase from 4% at the start of the year.
Taking into account both spot and derivatives trading, Binance’s market share slipped to 42% from 60%, while OKX’s surged to 21% from 9%, according to CCData.
Price Action: At the time of writing, Bitcoin (CRYPTO: BTC) was trading at $41,564, down 0.51% in the last 24 hours, according to Benzinga Pro.
Photo by Primakov on Shutterstock
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