Binance’s Market Share Rebounds to 2020 Levels
Date: 2024-10-04 Author: Oliver Abernathy Categories: BUSINESS
According to a report from CCData on October 3, Binance’s spot and derivatives trading volumes fell by 23% and 21%, respectively, reflecting a general trend of falling activity on centralized cryptocurrency exchanges. In September, which is traditionally a tough month for digital assets, volumes across all CEX exchanges fell by 17%.
After this decline, Binance’s spot market share was 27%, while its derivatives market share was 40%. The last time the exchange had such figures was four years ago, in 2020.
Regulatory Issues and Rising Competitors
Since the filing of the lawsuit by the US Securities and Exchange Commission (SEC) in June 2023, Binance has been facing serious problems in the US market. The SEC accused the exchange of violating securities laws, including operating without a brokerage company registration and illegal securities transactions. Amid these difficulties, Binance changed its leadership, with Richard Teng replacing Changpeng Zhao.
Meanwhile, Binance's competitors have been able to capitalize on its weakened position. CCData notes that trading volumes on the Crypto.com platform grew by 40% in September. Based on 2024 data, this exchange showed the highest growth rate in the spot market, increasing its share by 8.08% to 10.5%. Bybit and Bitget also performed well, increasing their share by 3.48% and 1.59%, respectively, to reach 9.60% and 3.34%.
At the same time, Binance, Upbit, and OKX were among those that lost the largest market shares, falling by 5.34%, 4.60%, and 4.04%, respectively.
Market Expectations for Q4
Experts predict asset prices to rise and liquidity to improve in the final quarter of the year, amid the expected interest rate cuts by the US Federal Reserve and the outcome of the US presidential election. However, in September, crypto markets came under pressure due to global economic instability caused by conflicts in the Middle East.
