Small cryptocurrency exchanges rated as having a higher level of risk to customers have been the main winners of the massive drop in Binance's market share in the five months since US regulators accused it of violating federal laws.
Companies Like Huobi and KuCoin Increase Market Shares This Year
According to data from industry research organization CCData, companies such as Huobi Global and KuCoin, both based in Seychelles, have been among those that have managed to increase their share in the trading of cryptocurrencies such as Bitcoin and Ethereum since the beginning of this year.
By contrast, exchanges rated top by CCData have experienced a decline in aggregate market share from 80 percent to about 68 percent since the start of the year as they exceeded the “minimum threshold for acceptable risk” for customers.
In the same period, the industry leader Binance's market share dropped from 56 percent to just over 40 percent.
The changing landscape shows investors' sensitivity to two lawsuits filed against Binance by US regulators this year.
Huobi, which has increased its market share by almost 6 percent since January, took the lead among the exchanges that increased its market share in 2023, although it was not rated as top-level by CCData.
DigiFinex and KuCoin, which increased their shares in the crypto market by 3.5 percent and 1.3 percent, respectively, are among other exchanges.
*Not investment advice.