Crypto exchange Binance saw its overall market share drop in both spot and derivatives trading markets.
CCData’s latest monthly exchange review shows that Binance commanded 36.6% of all spot and derivative volume — a 20% drop from the month prior, and the exchange’s worst performance since 2020.
Spot volume alone dropped 22.9% to $344 billion, while derivatives trading volume on Binance fell by 21% to $1.25 trillion.
Binance appears to have lost out to competitors like Crypto.com, which recorded a 40% increase in trading volume between August and September. The exchange also grew its market share the most in 2024, now accounting for 10.5% of the crypto market and is the fourth-largest exchange by trading volume.
Interestingly, Korean exchange’s Upbit and Bithumb also saw marginal increases in market share. The uptick in activity comes after South Korean regulators amped up the pressure on exchanges to help detect questionable crypto trades.
“Korean traders are known for their high-risk tolerance, with the altcoin premium serving as a key indicator of demand for riskier assets,” said Kaiko researchers in a report.
“After peaking at 11% in March, the premium has steadily declined due to weakening global risk sentiment and new local crypto regulations.”
While Binance has faced increased regulatory challenges in various markets, its decline in market share comes amid a broader decline in crypto trading volumes. Researchers from CCData believe that the current state of the market “aligns with historical seasonality trends,” where late summer months see a slowdown in activity.
“With catalysts such as increased market liquidity following the Federal Reserve’s interest rate cut and the upcoming U.S. election, trading activity on centralized exchanges is expected to rise in the coming months,” said CCData.
