According to CCData, which was cited by Bloomberg, Binance, which was formerly the leading player in the cryptocurrency exchange industry, has had a seven-month decrease in its spot market share, and it currently stands at only 34%.
Around $12,230 BTC, or $330 million, and about 198,200 Ethereum (ETH), or $323 million, have been withdrew from Binance since August. About 20% of the $1 trillion cryptocurrency market is made up of Ether, while over half of it is made up of Bitcoin.
But according to K33 analysis, Binance’s trading volumes have also collapsed, with the 7-day average trading volume for Bitcoin down by 57% since the start of September. While Coinbase, an American exchange, has seen a 9% growth in volume over the same period, other exchanges, like as Coinbase, have maintained more steady volumes.
Analyzing Binance’s 34% Spot Market Share Decline,Analyzing Binance’s 34% Spot Market Share Decline
Reasons for Binance’s Drop
This drop has been attributed to other sources. In an effort to draw more customers and increase trading volumes, Binance decided to provide zero-fee trading for popular cryptocurrencies like Bitcoin and Ethereum. This decision initially benefited the exchange. Nevertheless, after these discounts ceased, it has become less appealing. Some people have looked into other platforms as a result of this change.
The legal sections of Binance have made the company’s problems worse. The U.S. Justice Department may pursue criminal charges against the business’s CEO, Changpeng Zhao (CZ). The company has also seen large layoffs and high-profile senior departures, raising questions about its place in the market going forward.
The Future Path of the Cryptocurrency Market
Not everyone, however, is against Binance; Changpeng Zhao’s recent upbeat remarks on the performance of his Initial Coin Offering (ICO) attracted favourable notice. The tokens, which were originally worth 15 cents apiece, are currently selling at $213 after reaching a peak of $675 in 2021.
With a market value of $33 billion, the BNB currency is now ranked as the fourth-most valuable digital asset worldwide. Zhao’s estimated net worth of $10 billion is based on the value of his business holdings, according to Forbes. It excludes the large portion of BNB that he probably controls.
With $188.20 billion in market share and a lead of 0.87% in trading volume, we can conclude that Binance is still in the lead. On the other hand, 89.5% of trade volume and 91.7% of market depth were held by the top 8 platforms.
Nonetheless, events pertaining to cryptocurrencies will dictate the course of the market’s future expansion. The US government and bankrupt companies’ selling pressure, together with the announcement of bitcoin ETFs being introduced, have taken front stage in the market.
Analyzing Binance’s 34% Spot Market Share Decline,Analyzing Binance’s 34% Spot Market Share Decline,Analyzing Binance’s 34% Spot Market Share Decline