While Binance remains by far the biggest platform for buying and selling digital assets as well as crypto derivatives, its dominance is waning. The exchange’s share of spot trading volumes slid to 32% in November from 55% at the start of 2023, according to CCData. Its derivatives market share declined to 48% from more than 60%.
Delving deeper into the options market, traders are loading up on bets that the coin will surge to $50,000 by January, according to data compiled by Deribit, the largest crypto options exchange. Combined spot and derivatives trading volume on centralized exchanges rose 40.7% in November, to $3.61 trillion, the highest combined total since March, according to researcher CCData.
Combined spot and derivatives trading volume on centralized exchanges rose 40.7% in November, to $3.61 trillion, the highest combined total since March, according to researcher CCData.
According to figures from industry data provider CCData, Binance’s share of the crypto spot market fell to roughly 32 per cent at the end of November from a high of well over 50 per cent at the start of the year. Its hold on the crypto derivatives market has shrunk from 64 per cent in December 2022 to 48 per cent.
In November, the won overtook the dollar as the largest fiat trading pair in crypto for the first time, according to data compiled by CCData. That excludes trading volume for stablecoins and some other trading pairs, the market data provider said. Stablecoins are by far the largest trading pair for other cryptocurrencies. CCData began tracking the data in 2021.
A 2022 Nasdaq survey found that 72% of financial advisers who were considering investing in crypto would be more likely to do so if a spot ETF were available in the U.S. According to analytics firm CCData.
Whether Binance is able to maintain its market share as a cryptocurrency exchange will determine the direction of Zhao’s fortune. Binance facilitated 32% of spot trades and 50% of derivatives trades in October, according to a report from CCData – though its share in spot markets has declined for eight consecutive months, per the report.
Binance has been losing market share for months—recording the biggest drop in market share for derivatives, its bread and butter, among any major exchange last month, according to analytics group CCData—and that could continue.
About $800 million worth of Bitcoin, Ether, and the USDT and USDC stablecoins were withdrawn from the crypto exchange after news of the agreement initially broke on Tuesday, according to digital asset data and index provider CCData. The outflows can be explained in part by investors concerned about impending regulatory requirements Binance will be subject to per its agreement with prosecutors, or from institutional investors moving money elsewhere to save face, said CCData research lead Josh de Vos.
Binance, which exploded onto the crypto scene in 2017 and almost immediately took on and surpassed larger rivals, saw its market share surge to more than 60% worldwide after the fall of FTX in November 2022. Since then, its combined market share for spot crypto and derivatives has declined to less than 44% this month, according to researcher CCData.
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