Binance’s market share dropped from 75% last year to around 54%. According to the data, the dominance of the world’s largest cryptocurrency exchange may drop to 50.76% by the end of September. Meanwhile, the company’s rival Upbit’s share rose from 6.19% in September 2022 to 14.51%. Another competitor, Huobi, can also end a successful year, as its dominance rose from 2.83% last year to 8.58% by September this year. The data clearly shows that users are winking at other platforms. By the way, Coinbase is still the most popular among platforms supporting USD, and this is due, among other things, to the collapse of FTX in November, after which users moved to other platforms. What’s going on around Binance’s house? The crypto exchange and CEO Changpeng Zhao (CZ) were recently sued by the US SEC for alleged violations of securities laws. Meanwhile, the CFTC has also filed a lawsuit against Binance, alleging that it violated federal law and failed to register the exchange in the US. The company is also under investigation in France, recently it even had to withdraw from the Dutch market and liquidated its operations in Cyprus as well. Regulatory concerns surrounding the stock market can certainly be hidden behind the declining dominance. In addition, the CEO of the company’s American business and several high-ranking executives also resigned. The company has laid off thousands of workers this year, raising even more questions about whether all is well behind the scenes. However, there may be another main reason behind the decrease in share, namely the discontinuation of zero-fee trading; the introduction of this in July 2022 attracted more customers to the platform, who probably also left the crypto exchange after the termination of the service.
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