Binance market share at 1-year low: Kaiko

• Binance’s spot trading market share stood at 55.9% in June 2023, hitting a nearly one-year low.
• The exchange was facing regulatory action not only in the U.S. but in countries such as France and Belgium as well.

The market share of the world’s leading cryptocurrency platform, Binance [BNB], was reeling under the pressure of increased regulatory scrutiny not only in the United States, but across several countries.

According to data from research firm Kaiko, Binance’s spot trading market share stood at 55.9% in June 2023, hitting near a one-year low. The figure is nearly the same as the last two months.

But the slight dip this month made it hit the lowest point since August 2022, when it was at 53.7%.

The trading platform was facing enforcement action at the hands of the U.S. Securities and Exchange Commission (SEC) as the agency filed a lawsuit against the firm and its founder Changpeng “CZ” Zhao early this month.

In late March, another U.S. agency, the Commodity Futures Trading Commission (CFTC), also filed a lawsuit against the firm.

Binance’s U.S. division lost almost all its market share after the lawsuits from the CFTC and the SEC, Kaiko’s data shows.

Regulatory troubles across countries

Binance is also facing regulatory scrutiny in other countries, such as France and Belgium. While the former is investigating the exchange, the latter has asked Binance to stop its operations in the jurisdiction.

Meanwhile, established TradFi institutions such as BlackRock and Wisdomtree have also applied to offer spot Bitcoin exchange-traded funds (BTC ETFs).

Binance’s market share hit low also when it stopped a zero-fee promotion in March. It has recently launched a new promotion offer for stablecoins, including True USD [TUSD], Binance USD [BUSD], Tether [USDT] and USD Coin [USDC], beginning 30 June.

Despite its declining market share, Binance remained larger than all other cryptocurrency exchanges combined. It was the largest holder of customer tokens at press time, with $59.2 billion in reserves.

Another major exchange Coinbase, against which the SEC filed a lawsuit just after it charged Binance, has seen its market share fall to 6.8% in June from 7.6% in January.