- But the crypto exchange retained its leading position
- View detailed analytics from CCData
Spot trading volume on Binance has been falling for the second month in a row, according to CCData. In April, it fell by 48%. This is the second lowest level since March 2021.
Last month, the spot trading figure dropped to $287 billion. The exchange’s market share also declined for the second month in a row. Now it is 46%.
According to CCData, the reason for the decline was the unfavorable macroeconomic environment. Investors are afraid of an impending recession and prefer to temporarily abandon trading in volatile assets.
Analysts at Kaiko supplemented these findings with their own opinion. They believe that the drop in spot trading on Binance is due to a number of additional reasons.
- Firstly, they have recently eliminated zero fees on many pairs.
- Secondly, the actions of American regulators played their role. After the fall of FTX, many traders in the US switched to Binance. But due to the recent crackdown, they are leaving Changpeng Zhao’s company and looking for other platforms.
- Some firms are even reducing their participation in digital asset markets. So, yesterday Jane Street Group and Jump Crypto (two leading market makers) announced their refusal from crypto-operations due to the actions of the regulator.
Despite this, Binance maintains its status as the largest crypto exchange. Its competitors Coinbase and OKX account for just 5.60% and 5.39% of total spot trading volume.