Binance loses ground among crypto exchanges, except in the US

With the end of the free of charge from costs on the BTC pairs, Binance has seen his market share back off. On the other hand, the hardening of the regulation at United States would affect more Coinbase and not Binance.USin full boom.

A message posted yesterday on Twitter caused a stir. Well known in the crypto community, @cobie suggested that a Interpol red notice targeted the CEO of Binance, CZ. The information has since been denied by the principal concerned.

The rumor did, however, have an effect on the price of its native token NBB – provisionally nevertheless. The loss of market share of the first exchange of the crypto sector is, on the other hand, more significant and lasting.

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Binance first affected by the end of zero fees

This trend was already noted last week by Kaiko. The French on-chain data specialist confirms it in its latest Data Debrief. Binance At the end of the first quarter, the company posted a market share in 16% decline.

With a global PDM of 54%, the international firm still remains well ahead of the rest of its competitors despite this. Kaiko puts forward several factors to explain the situation of the leading crypto exchange – but not only of this one.

The banking crisis and ongoing regulatory crackdown have disrupted the structure of the crypto-currency market, leaving uncertain dynamics among the world’s largest exchanges,” the analysts suggest.

Coinbase drops from 60% to 49% PDM in US

The Binance recoil However, the main reason for this is the end of its zero-fee program, which has been in place since last summer. The complaint filed by the US regulator, the CFTCcould also work against it – but probably less than the fees on a crypto market that is very sensitive to this parameter.

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By the way, regulation does not affect the American subsidiary of Binance. On the contrary, Kaiko notes. Yet, the U.S. market is particularly fragile at this time, with increasing pressure on the remaining exchanges.”

The main loser is Coinbase, which has always made regulation a competitive criterion in its domestic market. This did not stop the SEC, the stock market watchdog, from issuing a Wells notice to the exchange.

Previously dominant in the U.S., Coinbase saw its market share drop in the first quarter from 60% to 49%. Surprisingly “, Kaiko reacts, the big winner during this period of uncertainty is Binance.US.

Volume on exchanges at high levels

Unlike Coinbase and Kraken, its two main rivals, has for the moment been spared by the regulators. As a result, the platform has tripled its market share from only 8% to over 24%.

In a global market characterized by a strong uncertainty”, Kaiko nevertheless notes that trading activity has exploded in early 2023. However, this momentum could be partly “artificial” or at least nuanced.

Trading volume continued to soar and reached a four-month high in mid-March, holding at consistently high levels as part of a broader market rally.”

However, volumes began to fall sharply after Binance ended its zero fee program, the on-chain data further notes. The policy helped support activity. Or even put it on life support?

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