- But the cryptocurrency has maintained its lead
- Look at detailed analytics from CCData
The spot trading volume on Binance has fallen for the second straight month, according to CCData. In April, it decreased by 48%. This is the second lowest level since March 2021.
The spot trading figure dipped to $287 billion last month. The market share of the exchange also declined for the second month in a row. It now stands at 46%.
According to CCData, the reason for the decline was the unfavorable macroeconomic environment..
Investors are afraid of an impending recession and prefer not to trade volatile assets for a while.
Kaiko analysts added their opinion to these conclusions. They believe that the drop in spot trading on Binance is due to a number of additional reasons.
- First, they recently cancelled zero commissions on many pairs.
- Second, the actions of U.S. regulators played their part.. After the fall of FTX, many traders in the U.S. switched to Binance. But because of the recent crackdown, they are leaving Changpeng Zhao’s company and looking for other platforms.
- Some firms are reducing their participation in digital asset markets altogether. Yesterday, Jane Street Group and Jump Crypto (two leading market makers) announced their withdrawal from crypto operations due to regulatory actions.
Despite this, Binance retains its status as the largest crypto exchange. Its competitors Coinbase and OKX account for only 5.60% and 5.39% of total spot trading volume.
In spite of that, Binance remains the largest crypto exchange.