Binance’s market share shrinks with the end of fee-free BTC trading

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New data reveals that cryptocurrency exchange Binance has suffered a loss in market share since Bitcoin (BTC) ended zero trading.

A CCData report released in mid-May reveals that exchange market share continued to decline for the second consecutive month in April, falling to 46.3%. This is Binances’ lowest market share since October 2022.

The drop followed Binances’ decision to end its no-fee promotion for most BTC trading pairs. Cointelegraph spoke with a Binance representative, who said:

We predicted a decline in market share once we end our no-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 Binances’ current focus is to meet user needs through new and existing products while continuing to invest in compliance processes for a new era of regulatory certainty.

Previously, Binance controlled more than half of the market share, with some figures showing its share as high as 57.5%. Additionally, the report notes that spot trading on Binance fell 48.1% to $287 billion in April.

Related: Tether (USDT) Market Cap Surpasses ATH, Binance CEO Highlights Regulatory Caps

While the next largest exchanges, Coinbase and OKX, only account for 5.60% and 5.39%, respectively, of the total spot exchange market, the smaller exchanges have been gaining momentum. Upbit, for example, represents 4.77% market share in April, compared to 2.81% at the start of 2023.

Binance’s spokesperson told Cointelegraph that the exchange sees competition as positive for the space.

Binance welcomes and encourages competition. It drives innovation and is healthy for the industry.

These developments come as Binance experiences further changes to its operations. On May 12, the company announced its decision to end operations in Canada, citing new regulations.

Soon after, reports began to surface of its plans to lay off 20% of its workforce in June, which contradicted the company’s previous statements that no layoffs were planned.

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