Binance’s market dominance wanes with regulatory woes and futures market shifts
![](https://i0.wp.com/exchange68.com/wp-content/uploads/2024/09/binances-market-dominance-wanes-with-regulatory-woes-and-futures-market-shifts_66e237e5ee521.png?resize=780%2C470&ssl=1)
Quick Take
Binance, a dominant player in the cryptocurrency exchange market, has seen a notable downturn in its transaction volume over the past year.
In November 2022, the exchange handled approximately $500 billion in monthly volume. However, according to The Block, by November 2023, this number has fallen sharply to $230 billion. Regulatory pressures have intensified, with the Department of Justice imposing a multi-billion dollar fine, prompting Binance to employ a three-year monitor to oversee compliance.
This downward trend also extends to Asia-based volume, where Binance has seen its numbers halved, with competitors such as Upbit and OKX closing in.
![Asia Based Customer Exchange Volume: (Source: The Block)](https://i0.wp.com/cryptoslate.com/wp-content/uploads/2023/11/ASIA.png?resize=545%2C381&ssl=1)
Furthermore, Binance’s share of the futures market has equally suffered a blow, with the Chicago Mercantile Exchange (CME) taking the lead. Binance currently holds 26% of the market share, marking its lowest point since December 2021.
![Binance Futures Open Interest Dominance: (Source: Glassnode)](https://cryptoslate.com/wp-content/uploads/2023/11/FOI.png)
These developments suggest a further contraction in Binance’s market share, potentially exacerbated by the recent fines and compliance demands. This shift may have broader implications for the distribution of cryptocurrency transactions among major exchanges.