Binance’s Dominance Falters Amid CFTC Lawsuit, Fee Changes

Binance loses 16% trading volume market share
CFTC lawsuit and fee changes impact Binance
Binance.US triples market share

Cryptocurrency exchange giant Binance (BNB) $ 586.34 -0.27% has experienced a decline in its trading volume market share over the past two weeks, following a lawsuit filed by the United States Commodity Futures Trading Commission (CFTC) and the company’s decision to discontinue certain zero-fee trading options.

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Blockchain analytics platform Kaiko revealed in an April 4 newsletter that Binance’s market share had dropped by 16%, with the exchange holding 54% of the market share by the end of Q1. Despite the decrease, Binance still processes more volume than all of its competitors combined.

On March 27, the CFTC sued Binance, accusing the company of violating derivatives laws by offering trading services to US customers without proper registration. In addition, Kaiko cited Binance’s March 15 decision to cease zero-fee spot and margin trading for 13 trading pairs, including BNB trading pairs with various fiat currencies and stablecoins, as a significant factor in the company’s decline.

The end of zero-fee trading led to a considerable reduction in Binance’s excess volume, resulting in a more even distribution of market share among other exchanges. However, Binance’s US-based subsidiary, Binance.US, saw its market share triple from 8% to 24% during the same period, offsetting some of the overall decline.

Despite losing market share in trading volume, Binance maintained its dominance in derivatives, only surrendering 2% of its market share in the last quarter. Kaiko attributed the reduction in trading volume primarily to the cessation of zero-fee spot trading rather than the ongoing CFTC lawsuit.

In other news, Acre Software, a UK-based firm that uses blockchain technology to improve the mortgage and insurance application process for advisers, has secured £6.5 million ($8 million) in funding from investors with ties to financial institutions.

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José Gustavo

José is a crypto enthusiast who trades crypto night and day. He loves to share his trading stories and experiences in all his published articles. José likes to hang out and travel to meet new friends. Enjoys sushi, vodka, and tequila.