It has been a wild ride for the world’s largest cryptocurrency exchange – Binance, this year. As US watchdogs pursue it for alleged violation of federal laws, the platform appears to be losing its market share at a rapid pace.
Blockchain analytical firm Kaiko reported that Binance’s spot market share has dropped to 50% from 64% earlier this year. That’s a 22% decline in the last seven months. Besides the CZ-led exchange, Kaiko’s data suggest that Coinbase also met a similar fate after plunging from 8% to 5.5% during the same period.With Binance and Coinbase’s grip on the market dwindling, other prominent crypto exchanges have boosted their market shares.
Binance, for one, has been facing stiff competition from offshore exchanges such as OKX, Huobi, and Bybit since the start of 2023. All three have not only gained market share but have also scaled their footprints, especially in Asia. Hong Kong has gained prominence as a crypto hub in Asia. But if Binance seeks refuge in the city-state, its uphill battle would involve making several operational adjustments just to score a license.