Binance loses market share to competitors

Binance is the world's largest exchange. However, due to regulatory disagreements, the company is losing market share to competitors.

The crypto exchange Binance wants to reach one billion users, Vishal Sacheendran, head of regional markets at Binance, said in an interview. However, this goal has been hampered by many regulatory hurdles over the past two years. As a result, other exchanges seem to be becoming more interesting for new customers, according to a recent report by CCData.

In September, Binance was still trading "only" 27% of the spot trading volume, representing a 20% drop. This is the lowest level of market dominance for the world's largest crypto exchange since September 2020. Derivatives trading also fell 20%, leaving Binance with 41% of the market. Although OKX and Bybit own 18% and 15% of the market, respectively, they still lag far behind.

In addition, the Binance Blockchain BNB faces new competition from Tron and Solana. Trading volume on decentralized exchanges on the BNB Chain dropped significantly in early September.

However, there is a bright spot: after the recent wave of selling, BNB's value has fallen sharply, but over the month, the cryptocurrency is still 7% in the plus. Moreover, Binance founder Changpeng Zhao has been back at large since late September after a four-month prison sentence.