Bitcoin Exchange Binance’s Market Share is Decreasing: What Does This Mean?

• Binance’s market share has dropped by about 15% in the last few months.
• In February, Binance had a 62% market share in spot crypto trading volumes.
• Binance’s competitors, such as Coinbase, have seen a slight increase in their market share in recent months.

How has the end of Binance’s zero fee campaign affected its market share, and what is the situation with its competitors?

Binance’s Market Share is Falling!

Binance’s market share has dropped by about 15% in the last few months, as the crypto exchange giant says it doesn’t “need” to take more.

According to data, Binance had a 62% market share in spot crypto trading volumes in February, which has dropped to about 47% so far this month. Nevertheless, Binance continues to be the world’s largest spot crypto exchange.

Binance’s Chief Strategy Officer, Patrick Hillmann, said in an interview, “We have a lot of market share right now. We don’t feel the need to capture more market share.” and added, “Actually, we want more competition. Competition is good for the market. It’s good for the industry.”

Binance’s declining market share is due to factors such as the end of its zero fee campaign for Bitcoin trades and the general sluggish trading volumes in the last few months.

Crypto exchange market share

A Binance spokesperson said, “We anticipated a decrease in market share when we ended our zero fee BTC trading campaign for most trading pairs. This doesn’t concern us. We continue to maintain strong financial performance. Our primary goal is to continue serving our users by maturing our existing products and services and investing in compliance processes for a new era of regulatory certainty.”

Binance launched a zero transaction fee campaign for 13 Bitcoin pairs, including BTC/USDT, BTC/BUSD, and BTC/EUR, from July last year until March this year.

Binance’s Falling Market Share

Binance’s declining market share coincided with a drop in overall trading volumes. According to data compiled by CoinOtag, monthly crypto trading volumes have been below $1 trillion since October last year.

The latest regulatory action against Binance and its CEO Changpeng “CZ” Zhao by the US Securities and Exchange Commission in March may also have been a contributing factor.

Meanwhile, Binance’s competitors, such as Coinbase, have seen a slight increase in their market share in recent months.

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Earlier this month, Coinbase launched an international derivatives exchange from Bermuda, allowing users to make permanent futures trades with leverage. Earlier today, Coinbase expanded a range of services it offers to customers in Singapore. The company has also strengthened its relationship with regulatory authorities in the United Arab Emirates, as it faces increasing challenges in the US.

Coinbase, Binance’s Rival, is Strengthening

Hillmann said, “We want Coinbase to grow. As a US citizen, it’s really hard for me to see them leave the US. But if they can grow globally because they can be overseas – okay. We need a big player in space. It’s a good company to have. We need more than that.”