Binance's Market Share Hits Lowest Level Since November After CFTC Lawsuit, End of Zero-Fee Trading

The exchange's share of trading volume has dropped to 54% from 70% over the past two weeks.

AccessTimeIconApr 4, 2023 at 8:26 a.m. UTC
Updated Apr 4, 2023 at 3:15 p.m. UTC

Binance remains the world’s largest crypto exchange by volume, but its market share dropped by a sizable amount after a U.S. regulator accused it of fraud and the exchange eliminated zero-fee trading for some trading pairs.

Its share of trading volume has sunk to 54% from 70% two weeks ago, according to data from research platform Kaiko. That’s the lowest level since Nov. 5 and the lowest sustained market share since August, Kaiko said.

The U.S. Commodity Futures Trading Commission sued the exchange and founder Changpeng Zhao on March 27, alleging they offered unregistered crypto derivatives products in the U.S. against federal law.

Binance also witnessed its lowest bitcoin (BTC) trading volume since July 2022 on March 27 after it halted its no-fee trading promotion for 13 bitcoin spot trading pairs. “Binance’s excess volume largely vanished with the end of zero-fee trading, which was reflected in an even dispersal in market share among the remaining exchanges,” Kaiko said.

Kaiko noted that as global exchanges are increasingly being targeted by regulators, the U.S. market is particularly fragile now for the remaining crypto exchanges.

In the U.S., crypto exchange Coinbase's (COIN) market share dropped in the first quarter, falling to a weekly average of 49% from 60% during the quarter, while Binance.US picked up the slack. Its share rose to 24% from 8% during the quarter, Kaiko said.


Edited by Nick Baker.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Lyllah Ledesma

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.