Repeatedly targeted by the United States, Binance's market share has dropped from 57.5% to 43% within three months, a decrease of 25%.

The world's largest cryptocurrency exchange Binance has recently come under scrutiny by regulatory authorities, losing 25% of its market share in the past three months.

Why was BUSD issuance suspended?

In February this year, the New York State Department of Financial Services ordered BUSD issuer Paxos to stop issuing new BUSD tokens. Binance CEO Changpeng Zhao also announced the possibility of no longer using BUSD as a primary trading pair.

The trading volume of BUSD pairs accounts for approximately 40% of Binance's monthly trading volume.

Ilan Solot, head of the digital assets division at London financial services company Marex, believes this is one of the reasons for the decrease in trading volume:

"The suspension of BUSD issuance has affected Binance's liquidity, and media reports of Binance abandoning BUSD have also intensified pressure on Binance."

Ilan Solot also pointed out that the decrease in trading volume is related to Binance's cancellation of zero trading fees for Bitcoin trades.

Binance introduced zero trading fees for Bitcoin spot trading in July 2022, including 13 Bitcoin trading pairs, but on March 22 this year, Binance discontinued this promotion. Currently, only BTC/TUSD has zero trading fees as a promotion.

"Once the promotion ends, trading volume naturally decreases, which also affects the trading volume."