Binance’s share of the crypto market has fallen to its lowest level since 2020 amid a broader decline in trading volumes on centralized crypto exchanges.
Published October 4, 2024 at 3:39 am EST.
Crypto exchange Binance has seen its overall market share fall across both spot and derivatives markets.
CCData’s latest monthly exchange goodbye shows that Binance accounted for 36.6% of all spot and derivatives volumes – a 20% drop from the previous month and the exchange’s worst performance since 2020.
Spot volume alone fell 22.9% to $344 billion, while derivatives trading volume on Binance fell 21% to $1.25 trillion.
Binance appears to have lost out to competitors like Crypto.comwhich recorded a 40% increase in trading volume between August and September. The exchange also increased its market share the most in 2024, now accounting for 10.5% of the crypto market and is the fourth largest exchange by trading volume.
Interestingly, Korean exchanges Upbit and Bithumb also saw a slight increase in market share. The resumption of activity comes after South Korea regulators has increased pressure on exchanges to help detect questionable crypto transactions.
“Korean traders are known for their high risk tolerance, with the altcoin premium serving as a key indicator of demand for riskier assets,” Kaiko researchers said in a report.
“After peaking at 11% in March, the premium has steadily declined due to weakening global risk sentiment and new local crypto regulations.”
While Binance has faced increasing regulatory challenges in various markets, its decline in market share comes amid a broader decline in crypto trading volumes. CCData researchers believe the current state of the market “aligns with historical seasonal trends,” where the late summer months see a slowdown in activity.
“With catalysts such as increased market liquidity following the Federal Reserve’s interest rate cut and the upcoming US elections, trading activity on centralized exchanges is expected to increase in the coming months,” said CCData.
