Recently, the cryptocurrency market has been abuzz with news about two prominent players, Binance.US and Coinbase. While Binance.US, a leading cryptocurrency exchange in the United States, has been dealing with a significant decline in market share due to an ongoing regulatory lawsuit, Coinbase, another major exchange, has witnessed an increase in its market share.
Let's dive deeper into these developments and their implications.
Because it is Binance struggling?
According to data from Kaiko reported by ReutersBinance.US, the US-based arm of Binance, has seen its market share drop from over 22% in April to just 0.9% as of June 26. and the Exchange Commission (SEC) against Binance.US, Binance, and CEO Changpeng "CZ" Zhao.
The SEC alleges that Binance.US has been operating as an unregistered exchange. Notably, this lawsuit follows a similar action taken by the Commodity Futures Trading Commission against Binance and CZ earlier this year.
Read more: Binance Faces Setback As German Regulator BaFin Rejects Crypto Custody License Application
Good morning to Coinbase
Unlike Binance.US, Coinbase has seen a notable increase in its market share. Data from Reuters indicates that Coinbase's market share in the US increased from around 48% to 55% in June.
This increase can be attributed to Coinbase's naming as a watchdog partner in several SEC filings related to the launch of spot Bitcoin exchange-traded funds (ETFs) by asset managers.
Related: Coinbase User Meeting: 2,300 Join as Amici Curiae in Legal Battle with SEC
Current State of Crypto
The broader cryptocurrency market has witnessed a surge in trading volume, surpassing a staggering $2.7 trillion in combined spot and derivatives trading. Part of this rise can be attributed to rising investor sentiment following BlackRock's recent filing for a Spot Bitcoin ETFs. However, it is crucial to note that the SEC has yet to approve any spot cryptocurrency ETFs in the US and has rejected numerous applications from various companies.
Enthusiasts and investors should closely monitor these developments as they have the potential to significantly impact the cryptocurrency ecosystem. The changing fortunes of Binance.US and Coinbase, along with regulatory decisions, will shape the direction of the market.
Stay tuned for more updates.
