New data shows that cryptocurrency exchange Binance has suffered a market share loss since zero-free bitcoin (BTC) trading was suspended.
A report by CCData released in mid-May shows that the exchange’s market share continued to decline for the second straight month in April, falling to 46.3%. This marks Binance’s lowest market share since October 2022.
The drop followed Binance’s decision to end its fee-free promotion on most BTC trading pairs. Cointelegraph spoke to a Binance representative who said:
“We have forecast a drop in market share once we complete our no-fee BTC trading campaign for most trading pairs. That’s no problem for us. We continue to maintain our strong financial performance.”
The spokesperson added that Binance’s current goal is to serve users through new and existing products, while “continuing to invest in compliance processes for a new era of regulatory certainty.”
Previously, Binance controlled more than half of the market share, with some figures showing a share as high as 57.5%. Additionally, the report notes that spot trading on Binance fell 48.1% to $287 billion in April.
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While the next largest exchanges, Coinbase and OKX, account for just 5.60% and 5.39% of the total spot trading market, respectively, smaller exchanges gained some momentum. Upbit, for example, had a 4.77% market share in April, compared to 2.81% at the start of 2023.
The Binance spokesperson told Cointelegraph that the exchange sees competition as a positive for the space.
“Binance welcomes and encourages competition. It drives innovation and is healthy for the industry.”
These developments come at a time when Binance is experiencing other changes in its operations. On May 12, the company announced its decision to suspend operations in Canada, citing new regulations.
Shortly thereafter, reports surfaced of the company’s plans to lay off 20% of its workforce in June, contradicting earlier statements by the company that no layoffs were planned.
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