Trade data shows that major cryptocurrencies traded at a discount ranging between 2% and 5% on Binance.US last week.
Photo by Maxim Hopman on Unsplash
Posted July 5, 2023 at 3:25 am EST.
Binance.US, the U.S.-based subsidiary of the world’s largest crypto exchange, has seen an exodus of users over the last few weeks.
In a recent data debrief, crypto research firm Kaiko found that Bitcoin, Ethereum and several other cryptocurrencies traded at a discount on the exchange last week. As of June 28, the BTC/USD pair was trading at a 3% discount and ETH/USD was trading at a 2.8% discount.
U.S. dollar pairs for stablecoins like USDT and USDC, and major tokens including BNB, MATIC also traded at discounts of between 2% and 3%, while SOL and VET saw discounts of 3.5% and 4.5% respectively.
Binance.US announced its decision to transition to a crypto-only exchange following a lawsuit from the U.S. Securities and Exchange Commission (SEC) on June 5. In an announcement last week, the exchange notified users that it would be removing most USD trading pairs by June 26, urging users to withdraw their fiat currency or convert it into stablecoins on the platform.
Kaiko analysts noted that while there were occasional discounts for certain trading pairs after the lawsuit was announced, these discounts became more prominent after Binance.US announcement last week.
“Currently, the exchange still lists ten USD-denominated pairs. However, liquidity has deteriorated significantly, resulting in average daily trading volumes plummeting from $450mn to $20mn,” stated Kaiko analysts in the report.
Coinbase’s market share is up in June, reaching its highest level since Jan 2023. Meanwhile, https://t.co/pup2WYms9R market share hit a new all-time low, dropping below 1%. pic.twitter.com/nRBAqWtYgB
— Kaiko (@KaikoData) July 4, 2023
The exchange also saw its market share in the U.S. become increasingly depleted through the month of June, reaching its lowest point to date. Meanwhile, Coinbase’s market share jumped to the highest level since January.
