Binance exchange has recently faced challenges, reaching a $4.3 billion settlement with the US Department of Justice and witnessing its CEO, Changpeng “CZ” Zhao, step down. Despite this, Binance remains the leading crypto exchange, but its rivals have seen opportunities for growth in the market.
Coinbase, Others Benefit from Binance Woes – Kaiko
Following Binance’s troubles, Coinbase, the largest US crypto exchange, has experienced significant gains. According to blockchain research firm Kaiko, Coinbase’s market stock has increased by 75% in the last month, along with a 34% rise in market share. Outside of the US trading hours, Coinbase saw the most growth, particularly in Europe and Eastern Asia. The report suggests that as the bearish market trend slows, Coinbase is well-positioned for the upcoming bull market.
In addition, Bybit and OKX have also benefited from Binance’s regulatory issues. Bybit, based in Dubai, has seen a 50% increase in market share, and OKX recorded gains, particularly at the start of trading hours in Western Europe.
Binance Maintains Market Dominance
Despite the gains by Coinbase and others, Binance maintains dominance, holding almost 40% of market shares, with only a 4% decline. Binance has experienced outflows following the settlement news, but remains the leader in market liquidity for Bitcoin and altcoins. The exchange’s spread for its top BTC instrument widened initially but has since decreased, indicating increased market stability and reduced uncertainty.
At present, Binance’s daily trading volume is $8.6 billion, and the entire crypto market has recorded a 1.7% gain in the last week, totaling a market cap of $1.424 trillion.
Total crypto market cap valued at $1.424 trillion on the daily chart | Source: TOTAL chart on Tradingview.com
Featured image from Reuters, chart from TradingView