Binance Crypto Dominance Declines, Empowering Rivals Huobi And OKX

Binance is now facing another major challenge as a recent study by research firm Kaiko revealed that rival exchanges Huobi and OKX benefited from Binance’s decision to curtail its zero-fee promotion. Subsequently, the crypto exchange saw its market share drop in the spot trading of digital assets.

The study highlights the impact of Binance’s decision on the wider crypto exchange market, as Huobi and OKX were able to capitalize on the exchange’s loss and increase their own market share. 

This news comes at a time when the crypto exchange is already facing mounting controversies regarding its operations and regulatory compliance, as well as recent issues faced by its CEO Changpeng Zhao.

Despite being one of the largest and most successful crypto exchanges in the world, Binance’s recent setbacks have raised concerns about the company’s future prospects and ability to navigate the increasingly complex and competitive crypto market.

Binance Market Share Plunges

According to Kaiko, Binance’s market share of spot-trading volumes has fallen from 73% to 51% since the popular zero-fee promotion was mostly scrapped on March 22, allowing rivals Huobi and OKX to increase their market share. 

The same data revealed that Huobi’s share has grown from 2% to 10%, while OKX’s share has risen from 5% to 9%.

A spokesperson for the company has downplayed the decline in market share, telling Bloomberg that the drop is not as significant as some of their modeling had projected.

BTCUSD currently trading at $26,474 on the daily chart at TradingView.com

They added that the company’s main focus right now is to improve its existing products and services and invest in compliance processes in preparation for a new era of regulatory certainty.

In addition to Huobi and OKX, South Korean platforms have also seen their share of the market increase, with their share rising from a little under 8% to almost 14%, according to Kaiko’s figures. 

The findings highlight the increasingly competitive nature of the crypto exchange market and the challenges faced by leading players like Binance in maintaining their dominance.

Binance Faces Uphill Battle To Regain User Trust

The crackdown in the US has led to users becoming increasingly concerned about the safety of their funds on Binance, prompting them to diversify into other centralized exchanges, Cici Lu, founder of Venn Link Partners, told Bloomberg. 

However, Zhao has repeatedly assured users on Twitter that all funds are safe. Nonetheless, the trend of users shifting away from Binance towards other exchanges, combined with the recent drop in market share, poses a significant challenge for the company and its leadership. 

-Featured image from proudtorun.org