New data has revealed that cryptocurrency exchange Binance has experienced a loss in market share after it ended its zero-zero Bitcoin (BTC) trade.
TO report by CCData published in mid-May revealed that the stock's market share has continued to fall for the second consecutive year, to 46.3%. This marks Binance's lowest market share percentage since October 2022.
Market share drop follows Binance's decision to end its zero fee BTC commercial promotion for the majority BTC trading pairs. A Binance representative spoke to Cointelegraph saying:
โWe forecast a drop in market share once we end our free BTC trading promotion for most trading pairs. This is not a concern for us. We continue to maintain our strong financial performance."
The spokesperson added that, at this time, Binance's goal is to serve users through new and existing products while "continuing to invest in compliance processes for a new era of regulatory certainty."
Previously, Binance controlled more than half of the market share, with some numbers as high as 57.5%. Additionally, the report noted that spot trading on Binance fell 48.1% to $287 billion in April.
Related: Tether (USDT) Market Cap Breaks ATH, Binance CEO Points Out Regulatory Limits
While the next largest exchanges, Coinbase and OKX, account for just 5.60% and 5.39% of the total spot trading market, smaller exchanges have gained a little momentum. Upbit, for example, currently accounts for 4.77% of the market share, up from 2.81% at the start of 2023.
The Binance spokesperson told Cointelegraph that he sees the competition as a positive for the space.
"Binance welcomes and encourages competition, drives innovation, and is healthy for the industry."
These developments come as Binance undergoes other changes to its operations in addition to ending fee-free BTC trading. On May 12, the company announced that it had decided terminate its operations in Canadaciting new regulations.
Shortly after that announcement, reports began to surface about Binance's plans to lay off 20% of your workforce this June, which contradicts previous statements saying the company had no layoffs planned.
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