Bitcoin
Binance Loses 25% Bitcoin Market Share as Offshore Markets Shrink
As offshore markets diversify, Binance’s Bitcoin market share has fallen to 55%, while Bybit has emerged as a frontrunner with a 2% increase to 9.3%.
Binancethe domain of Bitcoin trading outside the US market appears to be declining as its share fell from 81.3% to 55.3% last year as the exchange faced increasing competition following the removal of its Bitcoin zero-fee promotion on a large scale. According to data from Kaiko, the same trend can also be observed with smaller altcoins, where Binance’s share fell from 58% to 50.5%.
Altcoin Market Share by Volume | Source: Kaiko
Analysts at the Paris-based firm attributed the changes to growing competition in the market as smaller exchanges are gaining traction as trading volumes recover. For example, platforms like Bybit and OKX are expanding their presence, especially in regions like Asia, with Bybit’s share of Bitcoin trading outside the US rising from 2% to 9.3%, while OKX gains from 3% to 7.3%. Bullish, MEXC and Bithumb also saw significant increases, the analysts added.
Meanwhile, Binance faces challenges as its $4.3 billion settlement with US regulators has imposed certain restrictions on the exchange. Noah Perlman, COO at Binance previously observed that the monitoring agreement with US regulators is now posing challenges to the exchange, despite seeing the agreement as an opportunity for improvement. Perlman says the US now acts as an “authorized arbitrator” and while the exchange is “not thrilled about this,” Binance still views this “as an opportunity to continue to improve the programs and procedures we have.”