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Binance Faces Stiff Competition as This Bitcoin Metric Declines: Kaiko

Binance’s dominance in Bitcoin trading outside the U.S. is dwindling as offshore exchanges expand their reach and regulatory landscapes evolve, reshaping the competitive dynamics of the digital asset industry.

According to data from Kaiko, Binance, once dominating Bitcoin trading markets outside the U.S., has witnessed a decline in its share of BTC trading over the past year, dropping from 81.3% to 55.3%.

Binance Loses Global Market Share

Similarly, Binance’s proportion fell from 58% to 50.5% for smaller tokens and altcoins. Kaiko attributed these changes to Binance’s discontinuation of its large-scale Bitcoin zero-fee promotion implemented last year.

Smaller exchanges such as Bybit and OKX have gained momentum as trade volumes recovered, leading to less concentration in offshore markets.

Over the past year, Bybit’s portion of global Bitcoin trading outside the U.S. surged to 9.3% from 2%, while OKX’s share rose to 7.3% from 3%.

The shift in market dynamics comes amid various developments in cryptocurrency, including Bitcoin’s fourth halving event over the weekend.

Despite the anticipation surrounding the event, its short-term impact has been mixed. Bitcoin has slightly outperformed its previous halvings in the first couple of days, up over 3% since the event. However, historical data suggests that while short-term impacts may vary, the long-term trajectory remains bullish.

One notable development following the halving was the increase in transaction fees on the Bitcoin network. The average network fee surged to an all-time high of $146, surpassing Ethereum’s average fee of $3 on the same day.

Meanwhile, funding rates for bitcoin perpetual contracts remained neutral despite briefly dipping into negative territory before the halving. However, open interest in these perpetual contracts remains high, exceeding $10 billion.

Binance’s Efforts to Rebuild Its Reputation

While Bybit and OKX have grown their presence in Asian markets, Binance has been dealing with legal challenges. In November, the company’s co-founder Changpeng Zhao pleaded guilty to U.S. anti-money laundering and sanctions breaches.

Binance, under new leadership by Richard Teng, a former Singaporean regulator, is currently working to improve its image amid U.S. regulatory scrutiny. The exchange has implemented stricter token listing criteria and formed a board of directors as part of this effort.

Meanwhile, as geopolitical tensions escalate in the Middle East, the demand for safe-haven assets has increased. Despite this, bitcoin has failed to attract significant inflows. Its value dropped by 6% in April, while traditional safe-haven assets like gold and the U.S. dollar rallied.

Kaiko explains that this could be attributed to the halving, which historically results in increased short-term volatility. The report also acknowledges that several other factors influence bitcoin’s performance during major market events.

ポスト Binance Faces Stiff Competition as This Bitcoin Metric Declines: Kaiko に初登場した。 クリプトポテト.


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