Binance.US’s market share drops after SEC lawsuit.

The US-based exchange of Binance, Binance.US, has experienced a significant decrease in its share of trading volume among exchanges that support USD-to-crypto trading.

The Block analyzed data that showed the dwindling market share of Binance.US, which now holds only 4.35%, down from more than 16% in April, measured relative to other exchanges that support trading in USD fiat pairs and not those that rely only on stablecoins.

It is worth noting, however, that this is not the case for Binance’s international exchange, which saw a slight increase in market share from the previous month.

SEC lawsuit stokes fear among traders

Binance.US’s market share began to fall when the company was sued by the US Securities and Exchange Commission (SEC) in early June for what the regulator called “blatant disregard of the federal securities laws.”

Since then, many traders have moved their funds off Binance.US, fearing what might happen if the company’s funds were to be frozen by the SEC, something the SEC has pushed for in court.

For now, however, Binance.US has managed to avoid a total asset freeze through a deal with the SEC.

Still, Binance.US suspended all USD deposits and withdrawals on June 13 and notified users that USD trading pairs would be removed.

Third largest US exchange

Based on the latest overall trading volumes among exchanges operating in the US, Binance.US remains the third largest exchange in the country after Coinbase and Kraken.

As of press time on Tuesday, the 24-hour trading volume on the exchange stood at $13.8 million, well behind Kraken’s $166.6 million and Coinbase’s $470.6 million in normalized volume, according to CoinGecko data.

BUSD loses its appeal

At the same time as traders are leaving Binance.US, the Binance-branded stablecoin Binance USD (BUSD) has also lost much of its appeal.

According to data from CoinMarketCap, BUSD currently has a market cap of around $4.3 billion, down from $5.5 billion a month ago.

This places BUSD in fourth position among stablecoins, right behind decentralized stablecoin DAI, which has seen its market cap rise to more than $4.6 billion over the past couple of days.

Tether’s USDT and USDC Coin (USDC) are the two largest stablecoins in the market, each with a market cap of around $83 billion and $28 billion, respectively.