Binance’s share in Bitcoin spot trading has reached 98%
Over the past year, Binance’s market share in Bitcoin spot trading has grown continuously and reached almost 100%. From February 18 to 19, more than 98% of transactions ran through the world’s largest crypto exchange.
In early 2022, Binance’s share was about 45%, but after the introduction of zero-fee for Bitcoin trading and the bankruptcy of FTX, one of Binance’s main competitors, the number of transactions on the exchange increased significantly.
Binance has been gathering more market share due to the growth of Bitcoin spot trading. According to data from Arcane Research’s experts, by the end of last year it had grown to 92%, and since January of this year it has grown more than 5%.
At the same time, Binance’s closest competitor Coinbase is in second place in terms of trading volume on the spot market. Its share is 8%.
According to experts, Binance’s absolute dominance in the spot market and the absence of strong competition can be seen as a significant risk factor. Oanda’s senior analyst Edward Moya noted that the exchange has become too large, and the concentration of such a large trading volume on one platform is not a healthy situation. If any trouble happens to Binance, the consequences can be very serious.
Earlier, the US regulator began investigating Binance. It also ordered Paxos to stop issuing BUSD tokens, a Binance stablecoin pegged to the US dollar. Binance’s Chief Strategy Officer Patrick Hillmann said that the company is ready to fulfill all the conditions and pay the required fines to end the investigation.
Also, in mass media appeared information about the possible withdrawal of Binance Holdings from the US market and the suspension of business relations with crypto companies and banks in the country.