Binance’s market share decreased after zero-fee BTC trading ended.
Recent data shows that Binance, a cryptocurrency exchange, has experienced a decrease in its market share after it ended its promotion of zero-fee trading for Bitcoin (BTC). According to a report by CCData released in mid-May, the exchange market share has decreased for the second consecutive time to 46.3%. This represents the lowest percentage of market share for Binance since October 2022.
The decline in market share follows Binance’s decision to end its zero-fee BTC trading promotion for most trading pairs. A Binance representative stated to Cointelegraph:
“We predicted a decrease in market share once we ended our zero-fee BTC trading promotion for most trading pairs. This is not a concern for us. We continue to maintain our strong financial performance.”
The spokesperson added that Binance’s goal right now is to cater to users through new and existing products while continuing to invest in compliance processes for a new era of regulatory certainty.
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Previously, Binance controlled over half of the market share, with some numbers as high as 57.5%. The report also noted that spot trading on Binance fell by 48.1% to $287 billion in April.
While the next largest exchanges blockchain and OKX make up only 5.60% and 5.39% of the total spot trading market, smaller exchanges have gained some momentum. For example, Upbit currently accounts for 4.77% of the market share compared to 2.81% at the start of 2023.
The spokesperson for Binance sees competition as a positive thing for the industry, saying:
“Binance welcomes and encourages competition, it drives innovation and is healthy for the industry.”
Binance is experiencing other changes in its operations, aside from ending zero-fee BTC trading. On May 12, the company announced that it is ending its operations in Canada, citing new regulations. There are also reports that Binance plans to lay off 20% of its workforce this June.
