Binance begins to lose ground against the competition

An analysis carried out by the firm Kaiko showed that the Binance exchange is losing popularity, compared to other companies

Binance, the leading platform for buying and selling digital currencies, is experiencing a steady loss of ground against its main competitors, according to data provided by analytics firm Kaiko. This decline coincides with the rise of other exchange houses, such as Huobi, Bybit and OKX’s.

Traditionally, Binance, led by Changpeng Zhao, has overwhelmingly dominated the market and positioned itself as the gold standard in cryptocurrency trading. However, regulators in the United States and other markets have constantly criticized the company, which has seriously affected its business model and, consequently, has impacted its users.

By contrast, its competitors paint a brighter picture, especially in Asia, where some regulations in places like Hong Kong or Japan are leaning toward a more relaxed stance on regulatory measures. This has generated positive momentum for cryptocurrency trading in the region, unlike in the United States.

Binance’s current situation is a stark reminder that the company is losing steam due to regulatory pressure. Both the CFTC (Commodity Futures Trading Commission) and the SEC (Securities and Exchange Commission) have filed lawsuits against the platform for carrying out operations without the necessary licenses within the US territory.

According to Kaiko, data analysis on spot trading shows a noticeable reversal in Binance’s market dominance. By July, its market share fell to 70 % from 90 % at the start of the year. Meanwhile, competitors like OKX’s have seen 11 % growth since January.

Furthermore, other rival platforms such as Huobi and Bybit have also increased their market share by 9 % and 7 % respectively in the same time period. It should be noted that these data refer specifically to the volume of cash or “spot” trade.

Binance’s loss of dominance is partly due to measures implemented by US regulators. Clara Medalie, Kaiko’s director of research, points out that one of the reasons behind this drop is related to the removal of zero-commission options from the platform. Currently, zero fees only apply to trading BTC with the TrueUSD stablecoin.

K. Tovar

Source: Criptotendencia

(Reference image source: Kanchanara, Unsplash)

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