Binance’s Share of the Bitcoin Cash Market Falls by More Than Half Since February’s Peak of 85%

[ad_1]

Binances’ market share in the Bitcoin spot market continues to decline, suggesting the crypto war is wreaking havoc on the world’s largest exchange.

Changing Bitcoin Spot Volume Dynamics

CoinShares head of research, James Butterfill, has published a chart of Bitcoin spot volume by market share from the centralized exchange (CEX).

It listed five specific CEXs and an additional category called Other but did not specify the other CEXs that make up that category.

Since 2022, Binances’ share of the Bitcoin spot market has increased from 20% to 85% in February 2023. Starting in March, a dramatic drop dropped to 50% before dropping to around 40% currently.

It was noted that at the start of 2022, other CEXs made up half of the Bitcoin spot market, shrinking as Binances’ dominance increased. However, other CEXs have been making a strong comeback since March.

Coinbase and OKEX are emerging as prominent winners amid shifting market dynamics resuming their former glories, as seen in early 2022.

Source: @jbutterfill on Twitter.comCFTC sues Binance

On March 27, the Commodities Futures Trading Commission (CFTC) filed charges against Binance, company CEO Changepeng Zhao (CZ), and compliance officer Samuel Lim for alleged violation of commodity regulations.

Around this time, several CEXs also faced regulatory action, including Kraken which in February agreed to a $30 million settlement with the Securities and Exchange Commission (SEC) for non-registration of its staking service. as a security product.

Similarly, Coinbase received an SEC Wells notice advising the company of pending litigation in March. At the time, Coinbase CEO Brian Armstrong said he was confident the company was operating legally and welcomed legal action.

Last month, Coinbase sued the SEC to force the agency to share its rulemaking decision-making process. Chief Legal Officer Paul Grewal said the agency has not given clear guidance on how the law applies to businesses operating in the crypto industry.

The frequency of enforcement action in conjunction with unclear rules has led some to conclude that US regulators are waging war on crypto.

Last week, Binance announced it was exiting the Canadian market, saying it could no longer operate in the region. Similarly, CZ said he was looking for ways to reduce his stake in Binance US, suggesting his intention to focus on other jurisdictions.

Disclaimer: The opinions of our editors are their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, and CryptoSlate does not endorse any project that may be mentioned or linked in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please exercise due diligence before taking any action related to the content of this article. Finally, CryptoSlate takes no responsibility if you lose money trading cryptocurrencies.

[ad_2]