Binance market share regressed to 2020 levels

Binance, the largest cryptocurrency exchange, lost market share during Red September, while its rivals gained more user transaction volume.

According to the October 3 CCData report, Binance spot and derivatives trading volumes fell 23% and 21%, respectively, as centralized crypto exchange activity generally decreased last month. CCData researchers said CEX volumes fell 17% in September, a historically challenging month for digital assets.

Founded by crypto dynamo Changpeng Zhao, the platform represented 27% market share in the spot sector and 40% of derivatives market volume following the decline. Binance last held this spot and derivatives market share four years ago, in 2020.

Change in Market Share on Selected Stock Exchanges, Monthly | Source: CCData

The exchange, now run by CZ’s successor, Richard Teng, has weathered regulatory whirlwinds in the US since the June 2023 Securities and Exchange lawsuit.

SEC prosecutors criticized the firm’s listing methods in proposed amended filings. According to the federal watchdog, Binance violated securities laws by operating an unregistered brokerage and offering illegal securities trading.

Meanwhile, rival exchanges have also benefited from the titan’s declining dominance. CCData noted that Crypto.com achieved a 40% increase in the spot and derivatives markets last month.

Year-to-date, Crypto.com has made the biggest gains in spot markets, increasing its market share from 8.08% to 10.5%. Bybit and Bitget have also made strong progress this year, seeing their market shares increase by 3.48% and 1.59% to 9.60% and 3.34%.

Binance, Upbit, and OKX lost the most market share, falling by 5.34%, 4.60%, and 4.04% to 27.0%, 2.50%, and 3.91%, respectively.

CCData report

Experts expect an increase in asset prices and liquidity in the fourth quarter with the Fed’s continued interest rate cuts and the results of the US presidential elections. Crypto markets traded lower due to global economic uncertainty stemming from conflicts in the Middle East.