Binance, the largest cryptocurrency exchange, lost market share during Red September as its competitors captured more user trading volume.
According to an Oct. 3 CCData report, Binance’s spot and derivatives trading volumes declined by 23% and 21% each as centralized crypto exchange activity generally declined last month. CCData researchers said CEX volumes fell 17% in September, a historically difficult month for digital assets.
The platform founded by crypto dynamo Changpeng Zhao accounted for 27% market share in the spot sector and 40% of derivatives market volume after the decline. Binance last held this spot and derivatives market share four years ago, in 2020.
The exchange, now led by CZ’s successor, Richard Teng, has weathered U.S. regulatory hurricanes since a June 2023 lawsuit filed by Securities and Exchange.
SEC prosecutors criticized the company’s listing procedure in the proposed amended filings. According to the federal watchdog, Binance violated securities law by operating an unregistered brokerage firm and offering illegal securities transactions.
Meanwhile, rival exchanges have benefited from the titan’s waning dominance. CCData noted that Crypto.com saw a 40% surge in spot and derivatives markets last month.
Since the start of the year, Crypto.com has made the largest gains in the spot markets, increasing its market share from 8.08% to 10.5%. Bybit and Bitget have also grown strongly this year, seeing their market share increase from 3.48% and 1.59% to 9.60% and 3.34%.
Binance, Upbit and OKX lost the most market share, falling 5.34%, 4.60% and 4.04% to 27.0%, 2.50% and 3.91% respectively.
CCData report
Experts expect asset prices and liquidity to rise in the fourth quarter, with further rate cuts from the Federal Reserve in sight and an outcome from the US presidential election. Crypto markets have declined due to global economic uncertainty resulting from conflicts in the Middle East.
