The world's largest crypto exchange, Binance continues to lose its dominance in the crypto market, according to a Bloomberg report. There has been a decline in Binance's market share in spot trading.
Increased regulation and regulatory action by US regulators against Binance has been a major concern for its users. Potential enforcement actions by the US Securities and Exchange Commission (SEC) could devastate exchanges and markets.
Coinbase and Binance saw less liquidity than the previous quarter. US regulators have taken strict regulatory action against major crypto exchanges Coinbase, Bittrex, and crypto-related entities. Binance is no exception, the US SEC and NYDFS took action against Paxos ordering the firm to stop printing the Binance USD (BUSD) stablecoin.
Binance CEO “CZ” confirmed the reason behind their latest change, making BTC/TUSD the only zero-fee spot trading pair as of March 22nd.
According to Kaiko, Binance's share of spot trading volume fell to 51% in May from 73% in March. Huobi's market share jumped from 2% to 10% and OKX from 5% to 9%. South Korea's stock market share rose to 14% from below 8%.
Cici Lu, founder of Venn Link Partners, said the US administration will continue to target Binance and its CEO “CZ.”
Binance's CEO plans to reduce his stake in crypto exchange Binance.US to lessen the impact on the branch amid targeted attacks on Binance.
