(Bloomberg) — Binance’s rehabilitation efforts appear to be slow to take root, with the largest crypto platform’s trading volume share of the roughly $2 trillion digital assets market falling in September to its lowest level ever. low in four years.
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The market share of the world’s largest crypto exchange fell to 36.6% last month, from 42.7% at the start of the year, according to researcher CCData. Binance’s 27% share of the spot market is the lowest since January 2021, while it accounts for 40.7% of derivatives trading, also the lowest in four years.
Binance has lost market share since March 2023 as it grapples with regulatory action and increased scrutiny globally. Last year, it settled with the U.S. Justice Department and several other agencies over charges including sanctions violations and agreed to pay a $4 billion fine. Its co-founder and then-chief executive, Changpeng Zhao, resigned and served four months in prison. Binance’s new CEO, Richard Teng, is a former regulator himself and has focused on discussions with regulators scrutinizing Binance around the world.
Combined spot and derivatives trading volumes across all centralized crypto exchanges fell 17% in September, typically a seasonally weak month, to the lowest level of monthly activity since June, according to CCData. Binance experienced the most severe market share decline last month among major exchanges, according to CCData.
A Binance spokesperson did not immediately respond to a request for comment.
Several smaller, centralized competitors like Bybit, Bitget and Crypto.com have recently gained market share, according to CCData.
“This trend may reflect crypto participants’ growing confidence in other platforms, which offer a comparable user experience with low trading fees, minimal slippage, and high market liquidity,” said Jacob Joseph, an analyst at principal research at CCData.
Earlier this month, Binance became the first centralized crypto exchange to surpass more than $100 trillion in lifetime trading volume, CCData said.
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