Binance’s Market Share Down By Double Digits In 2023

  • Binance has lost more than 10% of its market share since the beginning of 2023. 
  • Rival exchanges like Bybit and OKX have absorbed the freed-up market share. 
  • Meanwhile, the market share of the American arm of the crypto exchange has sunk below 1%. 
  • Regulatory crackdowns and the lawsuit by the SEC have been blamed for the tanking market share. 

The crypto market share of the largest crypto exchange in the world has gone down by double digits since the beginning of 2023. Binance’s market share has taken a hit from recent regulatory crackdowns and the lawsuit filed by the U.S. Securities and Exchange Commission last month. Meanwhile, the crypto exchange’s American arm has also lost a significant share of the crypto market. 

Binance CEO Changpeng Zhao Expects Heavy Trading Volume

According to a report by crypto analytics firm Kaiko, Binance’s market share of spot volumes has dropped from 64% to 53% since January 2023. The regulatory crackdown, as well as legal trouble associated with the SEC and the CFTC, has led to the shedding of more than 10% of the crypto giant’s market share. Rival crypto exchanges, including Bybit and OKX, have benefitted from Binance’s woes by soaking up the market share lost by the crypto giant. 

Meanwhile, Binance US’s market share slipped below 1% in the second quarter of 2023. The international exchange’s derivatives volume has also taken a hit this year. Following the lawsuit by CFTC, the exchange’s perpetual market share dropped from 66% to 56%. Kaiko reported that American crypto giant Coinbase also suffered a similar fate with its market share going from 8% to 5.4%.

Despite the sinking market share and mounting regulatory and legal trouble, Binance CEO Changpeng Zhao remains optimistic about the future of his crypto exchange. In a recent ask-me-anything session hosted on Twitter, Zhao stated that the trading platform is undergoing a lot of preparation in order to ready the systems to sustain higher crypto trading volumes. Citing historical patterns, Zhao stated that he was expecting increased trading activity in the next 6 to 18 months. 

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