United

<p><strong>Binance is slowly losing its title as the top crypto exchange in the world. Its competitors, Huobi and OKX, are gaining ground steadily.</strong></p>
<h2 style="text-align: center;" id="binance-8217-s-loss-is-huobi-and-okx-8217-s-gain">Binance&#8217;s Loss is Huobi and OKX&#8217;s Gain</h2>
<p>According to data from research firm Kaiko, Huobi and OKX, two crypto exchanges, have experienced a boost in market share <a href="https://finance.yahoo.com/news/drop-binance-crypto-dominance-boosts-072233764.html" target="_blank" rel="noopener">following a decline</a> in Binance&#8217;s dominance in spot trading of digital assets. Binance&#8217;s share of spot-trading volumes dropped from 73% to 51% by May 6, after the popular zero-fee promotion was mostly discontinued on March 22. During the same period, Huobi&#8217;s market share rose from 2% to 10%, and OKX&#8217;s increased from 5% to 9%. South Korean platforms also saw an increase in their share, reaching almost 14% from just under 8%.</p>
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
<p lang="en" dir="ltr">As of May 6, Binance’s spot trading volume market share dropped from 73% to 51%, affected by the cancellation of the zero-fee promotion. OKX rose from 5% to 9%. Korean exchanges grew from 8% to 14%. Bloomberg cited Kaiko data. <a href="https://t.co/3NbFhs1mE8">https://t.co/3NbFhs1mE8</a></p>
<p>&mdash; Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1656955861179469824?ref_src=twsrc%5Etfw">May 12, 2023</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<h2 style="text-align: center;" id="challenges-for-binance-8217-s-founder">Challenges for Binance&#8217;s Founder</h2>
<p>This shift in market share could present a new challenge for Changpeng Zhao, the founder of Binance. His business is currently facing <a href="https://walletinvestor.com/magazine/binance-is-under-investigation-by-doj-for-violating-sanctions-against-russia" target="_blank" rel="noopener">escalating regulatory scrutiny</a>, particularly in the United States. The increased regulatory pressure has raised concerns among users about the safety of their funds, leading them to diversify their holdings across different centralized exchanges, according to Cici Lu, founder of blockchain advisory firm Venn Link Partners.</p>
<p><img decoding="async" loading="lazy" class="aligncenter size-large wp-image-23044" src="https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/05/image1-1.png-1024x558.png" alt="" width="1024" height="558" srcset="https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/05/image1-1.png-1024x558.png 1024w, https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/05/image1-1.png-300x163.png 300w, https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/05/image1-1.png-768x418.png 768w, https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/05/image1-1.png.png 1100w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<h2 style="text-align: center;" id="binance-8217-s-efforts-to-reassure-customers">Binance&#8217;s Efforts to Reassure Customers</h2>
<p>Changpeng Zhao has been using Twitter as a platform to repeatedly assure customers that their funds are secure. However, trust in the digital-asset sector remains low after the cryptocurrency market downturn last year and the collapse of FTX. Binance&#8217;s spokesperson acknowledged the decline in market share but stated that it was not as significant as some projections had anticipated. The spokesperson emphasized Binance&#8217;s focus on enhancing existing products and services, as well as investing in compliance processes to prepare for a future with greater regulatory certainty.</p>
<h2 style="text-align: center;" id="challenges-faced-by-the-crypto-market">Challenges Faced by the Crypto Market</h2>
<p>While the crypto market has experienced a partial recovery from the $2 trillion slump in 2023, trading volumes and liquidity continue to suffer as investors remain cautious. The overall confidence in the digital-asset sector has been shaken, and investors have been hesitant to fully return to the market.</p>
<h2 style="text-align: center;" id="conclusion">Conclusion</h2>
<p>The curbing of Binance&#8217;s zero-fee promotion and the subsequent decline in its market share have benefited rival exchanges Huobi and OKX. The regulatory challenges faced by Binance, particularly in the US, have prompted users to seek alternative exchanges for their digital asset trading. Binance aims to address these issues by focusing on compliance and strengthening its existing offerings. However, the crypto market as a whole still faces ongoing challenges in rebuilding trust and attracting investors following the market downturn.</p>

Huobi and OKX Gain Ground as Binance’s Crypto Dominance Declines

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