🌎 Binance Loses Market Share as Rivals Gain in September Trading Volumes

Crypto’s largest exchange, Binance, saw a decline in market share during September, while competitors gained more user trading volume.

According to an Oct. 3 CCData report, Binance experienced a 23% drop in spot trading volumes and a 21% decrease in derivatives trading volumes. The overall activity on centralized crypto exchanges (CEX) fell by 17% last month, marking a historically challenging period for digital assets.

Market Share and Trading Volumes

Founded by Changpeng Zhao, Binance now represents 27% of the spot market and 40% of the derivatives market volume, a level last seen in 2020. The decline follows a turbulent period for the exchange, especially in the wake of U.S. regulatory challenges.

Regulatory Pressures and Leadership Changes

Since a Securities and Exchange Commission (SEC) lawsuit in June 2023, Binance has faced regulatory scrutiny. SEC prosecutors criticized the firm’s listing methods in amended filings, accusing Binance of running an unregistered brokerage and offering illegal securities trading. Richard Teng, CZ’s successor, now leads the exchange through these regulatory storms.

Rival Exchanges on the Rise

While Binance’s dominance wanes, rival exchanges have capitalized on the opportunity. CCData reported that Crypto.com saw a 40% increase in both spot and derivatives markets last month. Year-to-date, Crypto.com has achieved the largest gains in the spot markets, boosting its market share by 8.08% to 10.5%. Bybit and Bitget also made significant progress, increasing their market shares by 3.48% and 1.59% to 9.60% and 3.34%, respectively.

Market Share Shifts

Conversely, Binance, Upbit, and OKX have experienced the most significant losses in market share, declining by 5.34%, 4.60%, and 4.04% to 27.0%, 2.50%, and 3.91%, respectively.

Future Market Expectations

Experts anticipate a boost in asset prices and liquidity during Q4, with potential Federal Reserve rate cuts and the upcoming U.S. presidential election outcome. However, recent global economic uncertainty, particularly from conflicts in the Middle East, has caused downward pressure on crypto markets.