Trading Volume on Binance Plummets 57% in a Week
In September, there was a noticeable decrease in user activity on Binance. Data from K33 showed that over the past week, there was a 57% drop in trading volume compared to other exchanges.
On the other hand, spot trading on Coinbase increased by 9% during the same period, according to analysts.
This drop in activity is said to be a result of regulatory pressure faced by Binance in multiple countries.
The United States, in particular, has been the most heavily affected, with the Securities and Exchange Commission (SEC) filing a lawsuit against the exchange and its US arm, as well as CEO Changpeng Zhao.
The SEC accused Binance of facilitating transactions with tokens that were not registered as securities. More recently, it was reported that the US Department of Justice is also preparing to take legal action against Binance.
K33 research analyst Vetle Lunde noted that due to these developments, market makers have started to withdraw from the exchange out of fear that it may no longer be able to operate in the US.
As a result, users have begun to look for alternative trading platforms that have not yet faced regulatory pressure, leading to a significant increase in trading volume on these platforms.
