Binance’s market dominance slips to lowest point in four years

Crypto exchange Binance is losing its lead over its competitors as its business faces regulatory winds around the world, new Report It shows from digital asset data provider CCData.

The report, published on October 3, found that Binance accounted for 36.6% of the volume of spot and derivatives trading on centralized trading platforms in September, roughly 22% higher than its closest competitor, OKX.

Binance's spot trading volume fell more than 20% last month, giving it a 27% spot market share, according to the report. As of September 2020, it marks the lowest market cap for the exchange in more than seven years.

A spokesperson for Binance did not immediately return a request for comment.

In terms of derivatives trading volumes, Binance has a market share of around 41% in September due to a decrease of over 20% in trading volume. In comparison, the next most popular exchanges, OKX and Bybit, held 18.4% and 15.3% of the market share, respectively.

The narrowing of Binance's lead over its competitors comes at a time when trading on centralized crypto exchanges and positions and derivatives are declining. Spot and derivatives trading volume fell to $4.3 trillion in September, down 17 percent from the previous month.

Binance has faced a series of regulatory setbacks over the past two years, derailing the exchange's plans to onboard more users and loosening its grip on the global crypto market.

Binance was forced last year Get out of the Dutch And German markets As regulators refuse to give proper permission for the trading platform to operate there.

Meanwhile, The exchange came out of Canada In May 2023, when Canadian regulators begin implementing more stringent regulations in the country.

The exchange ran into legal trouble in the US late last year when federal law enforcement and regulators sued the company for violating anti-money laundering laws.

The suit also filed charges against him. Binance founder and former CEO Changpeng “CZ” ZhaoHe spent several months in prison for his involvement in the case.

Edited by Sebastian Sinclair.