Binance Market Falls to 51% as Huobi and OKX See Increase: Report
- Binance’s market share fell to 51%, while Huobi and OKX saw 10% and 9% growth.
- Binance remains the crypto spot market leader with over $9 billion in trades.
Huobi and OKX, two of Binance’s biggest rivals in the crypto exchange market, have seen an increase in market share after the largest exchange, Binance, scaled back its zero-fee promotion, according to research company Kaiko.
Kaiko’s figures show that Binance’s share of spot-trading volumes fell from 73% to 51% recently, while Huobi’s share rose from 2% to 10% and OKX’s from 5% to 9%. Also, South Korean crypto exchanges increased their share from under 8% to almost 14%.
Interestingly, a Binance representative said the decline was much less significant than the exchange’s initial projection. The spokesperson claims the firm’s primary focus was to improve existing products and services while investing in compliance to brace for new regulatory regimes.
In March, data from the Kaiko market intelligence firm suggested that liquidity for USDT and BUSD trading pairs of Bitcoin (BTC-USDT, BTC-BUSD) on Binance significantly decreased by almost 70%. At the same time, the BTC-TUSD trading pair saw an impressive increase of over 250% in liquidity within a 24-hour window.
Similarly, the decline was attributed to the exchange’s decision to terminate its flagship no-fee trading feature for all BTC pairs except BTC/TUSD.
Notably, Binance launched the no-fee trading feature for BTC pairs in July 2022. While experts have warned that zero-fee trading was an unsustainable endeavor, it has helped the exchange gain an additional 20% market share over the past eleven months.
Nonetheless, Binance remains the leader of the crypto spot market, according to data from CoinMarketCap. In the last 24 hours, crypto traders bought and sold over $9 billion of cryptocurrencies on Binance.