As per the latest data, the Binance exchange has increased its share of the business from 59.4% to 61.8% on monthly basis
Binance, the world’s largest crypto exchange by market volume, achieved constant growth since its foundation in 2017. According to CryptoComapre, crypto market data provider, Binance’s exchange volume reported a surge in its spot volumes, reaching an all-time high market share with a 13.7% increase to $504 billion.
Binance’s market share took a hit this week as the CFTC alleged Binance and its CEO/ Founder Changpeng Zhao (“CZ”) of wilful evasion of federal law and operating an illegal crypto exchange.
What are Binance Users Are Doing?
According to kaiko research, Binance trading volume skewed towards US trading hours with a similarity to Coinbase. Binance’s BTC volume in 2018 occurred 35% between 1 pm and 8 pm UTC(9 am to 4 pm ET). In 2023, 43.4% of BTC trading volume occurred, slightly lagging Coinbase’s 47.5%.
A post from CryptoQuant analyst explained, FUD around the exchange is currently not visible on-chain data. Exchange netflor, the relevant indicator, which measures the net amount of Bitcoin entering into or exiting the wallets of the exchange.
As can be seen in the above graph, the Bitcoin Binance netflow has had a negative netflow in the past few sessions, meaning that investors have transferred a net number of coins from the
Platform.
What’s Next?
Binance’s market share dropped and is expected to further decrease in the coming months. However, it could not predict how much the fall could be because it reinstated fees on its most traded BTC pairs as opposed to US regulatory ceasing to trade on the exchange.
