Binance’s trading market share grows for 4 consecutive months

Despite the negative news surrounding Binance, Binance still asserted its dominant position as it had the 4th consecutive month of increasing market share in the spot trading segment.

According to statistics from CryptoCompare, Binance is the crypto exchange with the largest trading volume in the market with the growth momentum and increase in spot segment market share for 4 consecutive months.

Since January, Binance’s spot market share has grown from 59.4% to 61.8% in February 2023, with a total monthly volume of $540 billion. Since November 2022, Binance’s spot market share has increased to 13.7%. Following Binance in terms of trading volume in February 2023 was Coinbase with just $39.9 billion, down 29% from the previous month, while Kraken was third with $19.3 billion, down 11%.

Regarding derivatives trading, Binance also holds a full share of the futures market, accounting for 62.9% of the total trading volume. Following are the exchanges OKX and Bybit with 14% and 13.3% market share, respectively.

CryptoCompare analyst Jacob Joseph commented:

“Despite the criticism that Binance has received in the past, investors in the market still choose this place to store their assets because it is considered the safest. Binance also possesses ample liquidity, thus limiting the risk of slippage when trading, and supports a wide range of useful trading pairs and services.”

Recently, Binance has continuously encountered negative news related to legal issues as well as being significantly affected when BUSD-Paxos was targeted by the US government. Soon after, the Binance.US acquisition of Voyager was opposed by the New York government, and then Binance admitted to losing its banking partner to handle USD transactions or past token securitization errors. However, it seems that this news has not been able to shake investor confidence in Binance.