Binance, Coinbase Market Shares At Stake Amidst Regulatory Turmoil
This year has been a wild ride for Binance, the world’s largest cryptocurrency exchange. As US regulators investigate it for alleged violations of federal laws, the platform appears to be rapidly losing market share.
According to blockchain analytics firm Kaiko, Binance’s spot market share has dropped to 50% from 64% earlier this year. This represents a 22% drop in the last seven months. Aside from the CZ-led exchange, Kaiko’s data suggests that Coinbase suffered a similar fate, dropping from 8% to 5.5% during the same time period.
Binance and Coinbase’s market share is dwindling, leading to increased competition from offshore exchanges like OKX, Huobi, and Bybit. These exchanges have gained market share and expanded their footprints, particularly in Asia. Hong Kong, a prominent crypto hub, could be a challenge for Binance if it seeks refuge in the city-state. The SEC’s lawsuit against the crypto exchange could hinder its ability to establish a meaningful presence in the Hong Kong market.
(With inputs from Shikha Singh)
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