Binance’s US-based exchange, Binance.US, has experienced a significant decline in its share of trading volume among USD-to-crypto trading exchanges. The decline in market share is visible in data analyzed by The Block, which shows that the exchange now holds a market share of just 4.35%, a significant decrease from over 16% in April. This market share is measured concerning other exchanges that support trading in USD fiat pairs and not those that rely on stablecoins.
It is noteworthy that Binance’s international exchange has not experienced a decline in market share; it has instead seen a slight increase from the previous month. Binance.US’s market share began to fall when the company was sued by the US Securities and Exchange Commission (SEC) in early June. The regulator accused the company of blatantly disregarding federal securities laws.
Traders Flee Binance.US
The SEC lawsuit had a significant impact on Binance.US, causing many traders to move their funds off the platform, fearing the assets would be frozen by the SEC. To avoid a total asset freeze, Binance.US made a deal with the SEC, although it suspended all USD deposits and withdrawals on June 13. The exchange then notified users that USD trading pairs would be removed.
Despite these measures, Binance.US’s trading volume remains significantly lower than other exchanges. According to CoinGecko data, Binance.US is the third-largest exchange in the US, after Coinbase and Kraken, with a 24-hour trading volume of $13.8 million. This amount is far behind Kraken’s $166.6 million and Coinbase’s $470.6 million in normalized volume.
Binance USD (BUSD) Also Loses Appeal
Binance-branded stablecoin Binance USD (BUSD) has also lost much of its appeal, according to data from CoinMarketCap. BUSD’s market cap is now around $4.3 billion, down from $5.5 billion a month ago. This places BUSD in fourth position among stablecoins, right behind decentralized stablecoin DAI, whose market cap has risen to over $4.6 billion over the past few days.
Tether’s USDT and USDC Coin (USDC) are the two largest stablecoins in the market, with a market cap of around $83 billion and $28 billion, respectively.
Binance.US has experienced a sharp decline in its share of trading volume since being sued by the SEC, leading many traders to move their funds off the platform. Despite avoiding a total asset freeze, the exchange’s trading volume remains considerably lower than other exchanges in the US. Additionally, Binance-branded stablecoin Binance USD (BUSD) has lost much of its appeal recently.