Binance’s leading position in Bitcoin trading outside the U.S. is weakening as offshore exchanges expand and regulatory landscapes change. According to data from Kaiko, Binance’s share of BTC trading dropped from 81.3% to 55.3% within a year. The same trend occurred for smaller tokens and altcoins, with Binance’s proportion decreasing from 58% to 50.5%.
The influence of Binance in Bitcoin trading outside the United States is diminishing due to the growth of offshore exchanges and the shifting regulatory environments, leading to a transformation in the competitive landscape of the digital asset marketplace.
Based on information from Kaiko and Binance, the proportion of Bitcoin trading outside the US that Binance handled has decreased noticeably over the last year. The figure dropped from a significant 81.3% to a more modest 55.3%.
Binance Loses Global Market Share
As a crypto investor, I’ve noticed that Binance’s market share in the trading volume for smaller tokens and altcoins has decreased from 58% to 50.5%. According to Kaiko, this shift can be attributed to Binance’s decision to discontinue its large-scale Bitcoin zero-fee promotion last year.
In recent times, trading platforms like Bybit and OKX have experienced a surge in activity due to the recovery of trade volumes. As a result, there is now less dominance by larger offshore market players.
As a researcher studying the trends in global Bitcoin trading outside the United States over the past year, I’ve noticed significant increases in the market shares of two major cryptocurrency exchanges: Bybit and OKX. Bybit’s share grew from a mere 2% to a substantial 9.3%, while OKX saw its share rise from 3% to 7.3%.
Amidst ongoing advancements in the crypto sphere, the market’s equilibrium has recently been disrupted by several significant occurrences, such as Bitcoin undergoing its fourth halving.
Although there was much excitement leading up to it, the immediate consequences of the event for Bitcoin have been uncertain. The cryptocurrency has seen a slight increase of around 3% in its value within the first few days following the event, which is a slightly better performance than in previous halvings. Nevertheless, past trends indicate that the overall trend for Bitcoin remains optimistic in the long run.
As a crypto investor, I’ve observed a significant change post-halving in the Bitcoin network. Fees for transactions have seen a substantial hike, reaching an unprecedented peak of $146 on average. Interestingly enough, this surpassed Ethereum‘s daily average fee of only $3 around the same time.
During this period, the financing costs for bitcoin perpetual contracts stayed steady, albeit momentarily dropping below zero prior to the halving event. Nevertheless, the open interest in these contracts has reached impressive heights, surpassing $10 billion.
Binance’s Efforts to Rebuild Its Reputation
As a crypto investor, I’ve noticed how Bybit and OKX have been expanding their reach in Asian markets. However, Binance has faced some challenges on the legal front. In fact, Binance’s co-founder, Changpeng Zhao, admitted his guilt to U.S. charges related to anti-money laundering and sanctions violations back in November.
As a researcher studying the cryptocurrency exchange landscape, I can tell you that Binance, led by new CEO Richard Teng who previously held a regulatory role in Singapore, is actively working to enhance its reputation amidst increased scrutiny from U.S. regulators. In response, they have introduced more stringent criteria for listing tokens and established a board of directors as part of their commitment to transparency and compliance.
Amidst the rising geopolitical turmoil in the Middle East, there has been a surge in the need for secure investments. Surprisingly, though, bitcoin has not experienced substantial inflows as a result. Contrary to this trend, gold and the US dollar have strengthened, with their values increasing by 6% in April for gold and appreciating for the US dollar.
Kaiko points out that this occurrence can be linked back to the historical effects of Bitcoin’s halving, which tends to cause heightened short-term price fluctuations. However, it’s important to note that other significant factors come into play when assessing Bitcoin’s market behavior during major events.
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2024-04-28 19:16