Binance loses, but remains by far the largest crypto exchange

Binance is a huge heavyweight within the crypto industry and has long been known as the largest crypto exchange in the world. Although this is based on hard facts, the stock market has lost some of its dominance in the market in recent months. This is partly due to the earlier decision to stop free trading in some bitcoin (BTC) trading pairs. However, the stock market does not have to prepare to give up its throne in the shortest time, as the competition is still miles away.

Binance is losing market share

Trading bitcoin for free allowed Binance to distance itself even more from its competition. After the measure was introduced in July last year, the market share shot up from 50 percent to a peak of no less than 72 percent.

After there is a point behind it zero fee policy was set, the market share has entered a downward trend. The exchange’s market share fell for the second consecutive month in April to 46.3 percent. This is also Binance’s lowest market share since October 2022.

A Binance representative indicated that the drop in market share was anticipated by the exchange and is not cause for concern:

“We predicted a drop in the market once we ended our free BTC trade promotion for most trading pairs. This is not a concern for us. We continue to maintain our strong financial performance.”

The spokesperson added that Binance’s current goal is to serve users through new and existing products while continuing to “invest in compliance processes for a new era of regulatory certainty.”

Crypto exchanges remain a long way off

While the next largest exchanges, Coinbase and OKX, account for only 5.60 percent and 5.39 percent of total spot trading, respectively, smaller exchanges have experienced some momentum since the start of the year. For example, Upbit accounts for 4.77 percent of the market share in April, compared to 2.81 percent at the start of the year.

Binance’s spokesperson indicated that the exchange sees competition as positive for the industry as a whole.

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