Binance lost 18% of its spot trading market share to Asian exchanges by May 6 after lifting zero fee trading in March.
Analytics firm Kaiko estimates that Binance’s share of spot trading declined from 73% to 51% after it rescinded its zero-fee trading policy.
Asian Exchanges Absorb Volume as Traders Appear to De-Risk
Accordingly, rival exchanges saw an uptick, with Huobi gaining 8% of the volume and OKX 4%. South Korean exchanges saw their share increase from below 8% to roughly 14%.
Early signs pointed to the South Korean exchange Upbit as the beneficiary of Binance’s loss of market share. By the end of April, its market share has risen almost 2% in 2023.
Despite the falloff, Binance’s overall market dominance is relatively secure, with Coinbase and Upbit only accounting for about 10% of global trading volumes.
However, investors may have been spooked by the recent lawsuit by the U.S. Commodity Futures Trading Commission…
