Crypto News- Binance, the cryptocurrency exchange, is gradually reclaiming its trading volume market share after resolving legal issues with the United States Department of Justice and settling a hefty $4.3 billion fine. Recent data from crypto research firm Kaiko reveals that Binance’s trading volume market share has surged to 49%, marking a recovery just two months after reaching a settlement with U.S. regulators.
Binance’s Market Dominance Recovers Following 4.3 Billion Dollars Settlement Agreement in the U.S.
The resurgence in market share comes on the heels of a challenging period for Binance, which saw multi-year lows amid legal uncertainties. Despite a strong start in 2023, the exchange faced setbacks in its spot market share throughout the year. Starting with a 55.2% share in January 2023, Binance’s spot market share dipped to as low as 34.3% in September, as reported by crypto data provider CCData.
Binance’s Triumph: Reclaiming Market Leadership Despite Regulatory Challenges and Record Settlement
In June 2023, analytics firm Nansen reported a net outflow of $2.36 billion from Binance, while data aggregator DefiLlama reported a larger figure of $3.35 billion flowing out of the exchange. However, former Binance CEO Changpeng Zhao contested these numbers, suggesting that third-party analytics firms might inaccurately interpret changes in assets under management (AUM) as outflows.
Despite challenges to its market share, Binance announced a significant achievement of gaining 40 million new users in 2023, representing nearly a 30% increase from the previous year. The exchange emphasized its growth in “key services” and underscored its commitment to user-centric decision-making. A Binance spokesperson, in a statement to Cointelegraph, mentioned:
“At Binance, our focus has always been on putting users at the center of every decision we make. As a result, users can continue to have confidence in our platform as we move into a new chapter of Binance’s story.”
The $4.3 billion settlement with U.S. officials, announced on November 21, covered “civil regulatory enforcement actions” from various government departments, including the Treasury and Commodity Futures Trading Commission (CFTC), as stated by Attorney General Merrick Garland in a press release.