Binance, the world’s largest cryptocurrency exchange, has successfully recovered its market share after a challenging 2023 marked by legal issues and a substantial settlement with U.S. regulators.
Despite starting the year with a strong 55% market share, Binance faced setbacks, including the end of a zero-fee Bitcoin trading promotion and a lawsuit by the Securities and Exchange Commission (SEC) in June.
The Department of Justice (DOJ) announced a $4.3 billion settlement in November, leading to the resignation of Binance founder Changpeng Zhao (CZ) and a drop in market share to around 32%. However, a swift recovery brought Binance’s market share back to 48.7%.
The platform’s reserves experienced a significant 20% decline from their peak, and trading volumes fell below those of its competitors, Coinbase and OKX. Despite these challenges, Binance’s resilience and recent recovery highlight its ability to navigate obstacles and maintain market dominance.
Other exchanges, such as OKX and Bybit, experienced increases in their market shares during this period. Coinbase Pro also benefited by receiving a substantial share of assets withdrawn from Binance following the DOJ settlement.
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