Binance’s Spot Market Share Falls to Lowest Level in Almost a Year
According to CCData, the volume of cryptocurrency trading fell by 15.7% in the spot market in May. The decline also impacted Binance, the largest exchange at the time, with its share in the spot market decreasing to 43%, compared to 57% in winter.
However, data compiled by Kaiko showed that the platform’s share in the spot market at present is actually 53.7% – an indication of its resilience after the Securities and Exchange Commission initiated a lawsuit against Binance.
This situation reportedly occurred again back in August 2022, when Binance’s share in the market was 52%.
The Nansen team speculated a future redistribution of capital between centralized and decentralized exchanges (DEX), driven by the increasing popularity of DEX platforms with investors who are enticed by the more privileged freedom they offer compared to centralized counterparts.
As analyst Alex Svanevik predicted, Venn Link Partners also concurred that there will be further erosion of Binance’s dominance upwards in the following months as traders embrace DEX platforms.
