Binance, the leading crypto exchange, has suffered a major setback in the past two weeks, with almost 16% drop in market share of trade volume. This is a result of the recent CFTC lawsuit against the exchange and Binance’s decision to end its zero-fee trading program. Kaiko, a crypto market data provider, reported that the banking crisis and regulatory crackdown have disrupted the crypto market structure, creating an uncertain dynamic among the world’s largest exchanges. Binance remains one of the largest exchanges globally, with a 54% dominance, but it exhibited a substantial fall in its market share in the first quarter of 2023.
Chinese reporter Collin Wu shared a thread on his official Twitter page, citing the loss of Binance. According to him, after the CFTC filed a lawsuit and Binance stopped most zero-fee activities, Binance lost 16% of its spot market share to 54%, but only about 2% market share in the perpetual contract market. Similarly, Coinbase also suffered a significant decline in its market share, dropping from a weekly average of 60% to just 49%. However, despite the lawsuit, Binance US had a remarkable surge, with its market share tripled to over 24% from the previous 8%.