As overseas expansion and new regulations change the dynamics of competition in the digital asset industry, cryptocurrency exchanges have begun to eat into Binance’s market share for bitcoin outside of the US.
According to Kaiko, over the last year the largest cryptocurrency exchange in the world saw its market share for bitcoin trades drop from 81.3 percent to 55.3%. Altcoins are smaller tokens that have a lower percentage. It dropped to 50.5% from 58.5%.
Kaiko attributed the change to Binance’s decision to stop a promotional campaign that eliminated trading fees. The analysts of the company wrote that “offshore markets are less concentrated and smaller exchanges have gained momentum with trade volume recovering.”
Kaiko reports that Bybit has increased its share in non-US Bitcoin trading to 9.3 percent over the last year. It was previously only 2 percent. OKX now accounts for 7.3%, up from 3%.
Binance is trying to rebuild their reputation under the scrutiny of US regulators. Richard Teng, a former Singapore regulator who now heads the exchange, has tightened rules for token listings and appointed an advisory board.
Since the beginning of the year, the price of bitcoin has increased four-fold. This is a boon for the digital asset industry. Last month the rebound after a 2022 crash took the token up to an all-time high of US$73 798, boosting trading volume.