Binance’s market share rebounds post $4.3B US settlement
After the Crypto exchange Binance settled the case with the United States Department of Justice and paid a fine of 4.3 billion dollars, the trading volume has started to regain its market share.
Data from crypto research firm Caico shows that Binance's trading volume has risen 49% two months after it settled its case with US regulators. The uptick follows several years of low prices as the exchange navigates its legal issues.
After two months of settlement, Binance's market share is recovering.
It has risen to 49% from a multi-year low. pic.twitter.com/Xuo4JQxpY9
— Kaiko (@KaikoData) January 29, 2024
Although Binance has had a strong start to 2023, the exchange has suffered market share losses throughout the year. The exchange's spot market share fell from 55.2% in January 2023 to 34.3% in September last year, according to crypto data provider CCData.
In June 2023, analyst firm Nansen reported that Binance experienced net inflows of $2.36 billion, while data aggregator Defillama reported that outflows from Binance topped $3.35 billion. However, Binance's former CEO Changpeng Zhao said the data may be inaccurate because third-party analytics firms externally measure changes in assets under management (AUM).
Despite the damage to its market share, Binance in 2018 It claims to have 40 million more users by 2023. The exchange said this represents an increase of about 30% compared to 2022 and that they have seen growth in their “key services”.
Related: Binance Agrees With US Government: Timeline of Enforcement Actions
In a statement sent to Cointelegraph by a Binance spokesperson, the exchange is focused on its users and moving into a new phase. They wrote:
“At Binance, our focus has always been on putting users in every decision we make. Because of this, users can continue to trust our platform as we move into a new chapter in Binance's history.”
In the year On November 21, US officials announced a $4.3 billion deal with Binance. Attorney General Merrick Garland said in a press release that the money would cover “civil enforcement actions” by government departments, including the Treasury and Commodity Futures Trading Commission (CFTC).
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