Binance Loses Market Share Following End of Fee-Free Bitcoin Trading

Binance Nigeria

According to recent statistics, Binance, the largest cryptocurrency exchange, has lost market share since it discontinued fee-free Bitcoin trading.

According to data published by CCData in the middle of May, the exchange saw its market share fall for the second consecutive month in April, to 46.3%. Since October 2022, this is Binance’s lowest market share.

This decline was precipitated by Binance’s decision to stop offering zero-fee trading on the majority of its BTC pairings. The spokesman stated that Binance’s primary focus is on its customers, both new and old, and that the company is “continuing to invest in compliance processes for a new era of regulatory certainty.”

Binance formerly dominated the market, with estimates placing its stake at 57.5 percent. The study also states that in April, spot trade on Binance decreased by 48.1% to $287 billion.

Although Coinbase and OKX, the next biggest exchanges, account for just 5.60 and 5.39 percent of the global spot trading market, respectively, smaller exchanges have gained traction. For instance, Upbit’s April market share was 4.77 percent, up from 2.81 percent at the beginning of 2023.

These adjustments occur at the same time as Binance is undergoing significant organizational shifts. The firm declared on May 12 that it will cease operations in Canada due to stricter government oversight.

Soon after, rumors started spreading that the corporation was planning to lay off 20% of its personnel in June, which ran counter to the company’s earlier denials that layoffs were in the works. Although Binance CEO CZ denied this rumors.

Pooja Bhargav