You are here: Home / News / Binance In Freefall: Regulatory Woes Trigger Seventh Consecutive Monthly Decline
September 2023 witnessed Binance, one of the world’s major cryptocurrency exchanges, facing another decline in its spot market share. The ongoing regulatory challenges in the United States have played a significant role in this continued slump.
Data provided by CCData reveals that Binance’s spot market share dipped for the seventh consecutive month. This decline significantly contrasts January 2023, when Binance boasted a substantial 55.2% market share.
Centralized Exchanges Experience Third Consecutive Month of Decline
In September, the crypto market encountered difficulties. Both centralized exchanges experienced a significant drop in their spot and derivatives trading volume, plunging by 20.3% to $1.67 trillion.
This marked the lowest monthly trading volume since December 2022. The decline was mainly attributed to the absence of market volatility and typical seasonal trends observed during Q3.
Source: CCData
Spot Trading Volume on Binance Hits Lowest Point in Three Years
Binance, in particular, saw its spot trading volume drop by a significant 36.9% to $115 billion in September. This sharp decline represents the exchange’s lowest monthly volumes since October 2020 and reflects a third consecutive monthly decline since June.
Binance’s spot market share currently stands at 34.3%, marking its lowest point since June 2022. The cessation of the zero-fee trading promotion for BTC-TUSD pairs last month further contributed to the volume decline.
Simultaneously, Binance experienced a noticeable decline in both its derivatives trading volumes and market dominance. The volumes dropped by 20.8% to $686 billion, reaching their lowest point since December 2020.
Despite this downturn, the company still holds a significant share of the derivatives market at 51.5%. However, it’s worth mentioning that this level of dominance is currently at its lowest since March 2022.
In September, the trading volume of derivatives on centralized exchanges declined by 17.7%, reaching $1.33 trillion. Interestingly, this decrease in spot trading led to a remarkable increase in the market share of derivatives, which hit an all-time high of 79.9%.
Since its peak in February at 65.4%, the company’s dominance in derivatives trading has dropped by 13.9%. Nonetheless, the leading position of the venue for derivatives trading remains intact, boasting a market share of 51.5%.
In contrast, competitors like OKX, Bybit, and Bitget have taken advantage of Binance’s decline, significantly increasing their market shares to 19.6%, 13.6%, and 9.43% respectively.
Related Reading | Ethereum Navigate Choppy Waters Amidst Market Volatility
