The United States arm of the crypto exchange Binance has been targeted by regulators over the last month. As a result, the Binance.US exchange has been seeing its market share declining rapidly, and now, the crypto exchange’s market share in the country has fallen to an all-time low.
Binance.US Market Share Falls Below 1%
Since the start of the year 2023, the market share of Binance.US had been on a steady rise as the exchange gained ground in the country. By April 2023, its market share grew rapidly and reached a peak of 27%, around which it trended as the crypto market struggled to fight off the bears. However, this was only short-lived as the United States Securities and Exchange Commission (SEC) came after the exchange.
On June 5, the SEC announced that it was suing Binance and its CEO Changpeng Zhao for alleged commingling of Binance.US user funds with the parent Binance exchange. This lawsuit would mark the start of the number of woes for the exchange as the SEC ramped up its scrutiny over the next month.
The result of this was a decline in Binance.US’s market share. By the end of June, it was already down more than 50%. And according to data from Keiko Data, Binance.US’s market share has now fallen to a new all-time low, now sitting below 1%.
Binance.US market share falls to all-time low | Source: Kaiko
Coinbase, another exchange that was sued by the SEC a day after Binance was sued also saw its market share tumble. However, the impact has not been as bad as Binance, and Coinbase remains the dominant crypto exchange in the country, with over 50% of the total market share.
Still Taking A Hit Globally
Although the effect of the lawsuit has not been as pronounced on the global platform of the exchange compared to Binance.US, the effects of such a lawsuit are still being felt. For example, Kaiko data from Tuesday shows that the market share for Binance when it comes to perpetual futures is down double-digit.
The exchange has usually dominated this part of the market, especially this year, always accounting for more than 60% of the market share. But June saw its perpetual futures market share fall below 60%, translating to a 10% decrease since December 2022.
Nevertheless, the crypto exchange continues to dominate the spot markets. According to Coinmarketcap, Binance remains the largest exchange by spot volume, commanding over $6.8 billion in a 24-hour period. Coinbase, the second-largest, commands around 10% of Binance’s value with a daily spot trading volume of $677.3 million.
BNB price struggles as market share falls | Source: BNBUSD on TradingView.com