How Binance maintains market lead despite a 22% drop in volumes

As a researcher with years of experience studying the cryptocurrency market and its key players, I’ve witnessed Binance’s dominance wane over time due to a combination of factors. The recent data showing a 22% decline in Binance’s trading volume and a loss of market share is concerning but not entirely unexpected given the regulatory challenges the exchange has faced.

1. The latest figures show a drop in Binance’s daily trading volume during Q2. However, it continues to lead the pack in terms of market dominance.

However, it’s important to note that its dominance has diminished compared to previous years.

Mixed metrics for Binance dominance

1. Latest findings from Coingecko’s analysis on centralized exchanges show that Binance remains the number one platform. Nevertheless, its supremacy seems to be gradually diminishing.

Based on the data, Binance’s spot trading volume hit a low point of $424.7 billion over the past year. This represents a significant drop of approximately 23% compared to the $549.8 billion traded in May 2024.

In the second quarter of 2024, I found that my study revealed a consistent 46.6% dominance of the total centralized exchange spot trading volume, despite the market’s volatility during this period.

In the analysis I conducted during the second quarter of 2024, I observed an uptick in market power for the company, holding a commanding 48.9% market share at the end of Q1. However, recent developments suggest that this dominance may be waning once more.

In Q2 of 2024, the trading volume amounted to $1.67 trillion in total, which represents a 19.8% decrease compared to the $2.08 trillion recorded in Q1 of the same year.

In the past, Binance held more than 60% of the market around the year 2022. However, its market share has noticeably decreased since then.

Why Binance’s dominance has waned over the years

The regulatory landscape has posed major obstacles for Binance’s advancement in the industry, with these issues arising in multiple regions around the world. Consequently, these regulatory challenges have significantly affected Binance’s ability to function and its position in the market.

In certain areas including Canada, Binance has been forced to shut down completely because of regulatory restrictions. This withdrawal from significant markets is indicative of the broader compliance issues the exchange must deal with.

Furthermore, its recent legal troubles in the United States have further complicated its position.

1. As a result of a comprehensive regulatory probe, both the exchange faced a significant monetary fine and its previous CEO, Changpeng Zhao (CZ), was sentenced to prison.

1. These advancements have influenced both the operational reliability and user/investor perception towards Binance.

Other exchanges such as Coinbase and Bybit have gained ground and reduced the previous market leadership of the exchange due to recent challenges it has faced.

If these rivals keep growing and potentially take advantage of any regulatory setbacks they encounter, their market power could weaken even more.

BNB falls

In simpler terms, the analysis of Binance Coin’s (BNB) price changes each day indicates that its value tends to follow the general direction of the larger cryptocurrency market.

29th July saw a drop of more than 1.6% in BNB‘s value, with its price falling from around $584 to roughly $574 by the close of trading. As we speak, BNB is being traded at approximately $573, marking a minor decrease of 0.3%.

Read Binance (BNB) Price Prediction 2024-25

Although there have been recent declines, Binance Coin (BNB) continues to stay above the neutral level on its Relative Strength Index (RSI), indicating that it maintains a bullish trend in the current market scenario.

2024-07-30 21:11

Mixed metrics for Binance dominance

Why Binance’s dominance has waned over the years

BNB falls

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