New data reveals that cryptocurrency exchange Binance has experienced a loss in market share since ending zero-free Bitcoin (BTC) trading.
A report by CCData released in mid-May reveals that the exchange’s market share continued to slide for the second consecutive month in April, down to 46.3%. This marks Binance’s lowest market share since October 2022.
The drop followed Binance’s decision to end its zero-fee promotion for most BTC trading pairs. Cointelegraph spoke with a representative from Binance, who said:
“We forecasted a drop in market share once we ended our zero-fee BTC trading promotion for most trading pairs. This is not a concern for us. We continue to maintain our strong financial performance.”
The spokesperson added that Binance’s current goal is to cater to users through new and existing products while “continuing to invest in compliance processes for a new era of regulatory certainty.”
Previously, Binance controlled over half of the market share, with some numbers showing its share as high as 57.5%. In addition, the report notes that spot trading on Binance fell by 48.1% to $287 billion in April.
Related: Tether (USDT) market cap breaks ATH, Binance CEO points at regulatory caps
While the next largest exchanges, Coinbase and OKX, make up only 5.60% and 5.39%, respectively, of the total spot trading market, smaller exchanges gained some momentum. Upbit, for example, accounts for 4.77% of the market share as of April, compared with 2.81% at the start of 2023.
The Binance spokesperson told Cointelegraph that the exchange sees competition as positive for the space.
“Binance welcomes and encourages competition. It drives innovation and is healthy for the industry.”
These developments come as Binance experiences other changes in its operations. On May 12, the company announced its decision to end its operations in Canada, citing new regulations.
Shortly afterward, reports began to surface about its plans to lay off 20% of its workforce in June, which contradicted previous statements from the company that it did not have any layoffs planned.
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