Bloomberg: Binance Struggles, Huobi and OKEx Rise as Competitors

Bloomberg reported that according to data from research firm Kaiko, competitor Binance saw a drop in market share after limiting zero-fee promotions in spot cryptocurrency trading, benefiting exchanges Huobi and OKX.

Binance Loses Market Share After Ending Fee Promotion

Bloomberg reported that Binance's market share dropped from 73% to 51% as of May 6 after ending its fee promotion on March 22. On the other hand, competitor Huobi's market share increased from 2% to 10%, while OKX's market share rose from 5% to 9%. Korean exchanges also saw an increase in market share from 8% to nearly 14%.

Bloomberg suggests that this change may pose a new challenge for Binance founder Zhao Changpeng. Binance's business is facing increasing regulatory pressure, especially in the United States.

US Pressure Affecting Binance's Business

Bloomberg reported that Cici Lu, founder of blockchain consulting firm Venn Link Partners, stated that the crackdown in the US has made users concerned about the security of their funds, leading them to diversify their funds to other centralized exchanges.

A spokesperson for Binance stated that the decline in market share has not reached the extent they predicted, adding, "Our primary focus now is to enhance our existing products and services, and continue to invest in compliance processes to prepare for the new era of regulatory certainty."

While the crypto market has partially recovered from the crash that saw assets drop from $2 trillion in 2023, investor withdrawals have kept trading volumes and liquidity subdued.