Binance, the world's largest cryptocurrency exchange, has recently come under SEC and regulatory pressure from various countries.
This pressure caused investors to leave Binance, which reduced the market share of the exchange.
In this regard, research firm Kaiko reported in its report that Binance's market share fell to a one-year low amid increasing regulatory scrutiny.
In its report, Kaiko said that Binance's spot trading market share fell to 56% in June compared to the previous two months.
Stating that this level is the lowest level since August 2022, when it dropped to 53.7%, Kaiko said that after the US Commodity Futures Trading Commission (CFTC) filed before the SEC, its daily market share was 47% on April 6th. He said it went down to .
“Besides declining market share, pressure on crypto exchanges like Binance has also increased after major financial companies like BlackRock applied for permission to start offering spot Bitcoin ETFs to attract investors who choose to work with regulated institutions.”
Evaluating the increasing regulatory pressure and Binance's declining market share, Nansen's CEO Alex Svanevik told Bloomberg:
“There is increasing pressure on cryptocurrency exchanges like Binance, which is causing Binance's market share to decline.
At this point, centralized exchanges like Binance will find themselves in a wedge between decentralized exchanges and traditional financial players entering the market.”
Aside from Alex Svanevik, blockchain consultant Cici Lu, founder of Venn Link Partners, also told Bloomberg, “Regulatory risk applies to all centralized exchanges. But Binance bears the brunt of regulatory actions. Binance regaining market share while meeting compliance requirements has tough times ahead for the exchange. It shows it will happen.” said.
*Not investment advice.
