Binance Loses 16% of Market Share After End of Zero Fees on BTC Pairs and Rising Regulation Troubles
Binance has lost a big share of its total trading volumes since ending its zero fees on Bitcoin pairs and in wake of the US Commodity Futures and Trading Commission (CFTC)’s lawsuit against the firm.
That’s according to the latest blog post by crypto analytics firm Kaiko, which says that Binance’s market share has dropped by a stunning 16%.
That being said, Kaiko notes that Binance remains far and away the largest crypto exchange in the world by volumes, maintaining a 54% market dominance.
None of the 17 other exchanges analyzed by the crypto analytics firm managed to claim an outsized proportion of the up-for-grabs market share versus each other.
That’s because, according to Kaiko, “Binance’s excess volume largely vanished”.
The CFTC announced a lawsuit against Binance last week, claiming that the firm has been illegally operating as a US commodity exchange.
But US regulators have been going after other major US-based crypto players.
Coinbase was recently issued a Wells Notice by the US Securities and Exchange Commission (SEC) regarding its securities law violations.
A Wells Notice is essentially a warning that the agency will soon take regulatory action.
Other firms have been shuttering US operations. Last month, Kraken closed its staking program after paying a fine to the SEC for alleged securities violations.
And last week, Bittrex shuttered is US operations in their entirety amid regulatory uncertainty.
Despite the falling market share of its global parent company Binance, the cryptocurrency exchange’s US platform called Binance.US has been gaining ground on Coinbase recently.
According to Kaiko, during Q1, “Coinbase’s market share dropped from a weekly average of 60% to just 49%... Surprisingly, Binance.US has largely picked
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