Binance‘s once-dominant position in global Bitcoin trading outside the U.S. is waning, with offshore exchanges gaining ground and regulatory changes altering the industry landscape.
Data from Kaiko reveals that Binance’s share of BTC trading dropped from 81.3% to 55.3% over the past year, attributed partly to the end of its large-scale zero-fee promotion. Smaller exchanges like Bybit and OKX have seen their market shares rise as trade volumes recover.
Bybit’s global Bitcoin trading share surged from 2% to 9.3%, while OKX’s portion rose from 3% to 7.3%. This shift coincides with Bitcoin’s fourth halving event, which had a mixed short-term impact despite historical bullishness. Transaction fees hit record highs post-halving, surpassing Ethereum’s fees.
Binance faces legal challenges, with co-founder Changpeng Zhao pleading guilty to U.S. anti-money laundering breaches. Under new leadership, the exchange is striving to improve its image amid regulatory scrutiny.
Meanwhile, geopolitical tensions in the Middle East have boosted demand for safe-haven assets, but Bitcoin’s performance has been lackluster, possibly due to increased short-term volatility post-halving.
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