Binance Market Drops 51% As Huobi And OKX See Increase: Report
- Huobi and OKX gain market share as Binance cuts no-fee promotions.
- Binance’s market share fell to 51%, while Huobi and OKX saw growths of 10% and 9%.
- Binance remains the leader in the cryptocurrency market with over $9 billion in trades.
Huobi and OKX, two of Binance’s biggest competitors in the cryptocurrency exchange market, have seen their market share increase after the largest exchange, Binance, scaled back no-fee promotion, according to research firm Kaiko.
Kaiko’s figures show that Binance’s share of spot trading volumes has fallen from 73% to 51% recently, while Huobi’s share has increased from 2% to 10% and OKX from 5% to 9%. Also, South Korean cryptocurrency exchanges increased their share from less than 8% to nearly 14%.
Interestingly, a Binance representative said that the decline was much less significant than the exchange’s initial predictions. The spokesperson claims that the company’s primary focus has been improving existing products and services while investing in compliance to prepare for new regulatory regimes.
In March, data from market intelligence firm Kaiko indicated that liquidity for USDT and BUSD trading pairs (BTC-USDT, BTC-BUSD) on Binance had dropped significantly by almost 70%. Meanwhile, the BTC-TUSD trading pair saw an impressive increase of more than 250% in liquidity within the 24-hour window.
Likewise, the drop was attributed to the exchange’s decision to end its main no-fee trading feature for all BTC pairs except for BTC/TUSD.
Binance BTC-USDT Liquidity Down Nearly 70% Since It Phased Out Fee-Free Trading Earlier Today BTC-BUSD Liquidity Down 60% In Same Timeframe BTC-TUSD Up Over 250% (from 9 BTC to 29) pic.twitter.com com/4Qr39KUIQi
– Riyadh Carey (@riyad_carey) March 22, 2023
Notably, Binance launched a no-fee trading feature for Bitcoin pairs in July 2022. While experts warned that trading without fees was an unsustainable endeavor, it helped the exchange gain an additional 20% market share over the past eleven months.
However, Binance remains a leader in the spot digital currency market, according to data from CoinMarketCap. In the last 24 hours, cryptocurrency traders have bought and sold over $9 billion in cryptocurrencies on the Binance platform.
Binance Market Down 51% as Huobi and OKX report debuts Coin issue.