In September, CCData reported a 26% decrease in trading volume on the Binance cryptocurrency exchange. This decline in activity has continued into October.
Many traders are abandoning Binance and switching to other Bitcoin exchanges out of concern that the platform will struggle with financial issues due to increased regulatory pressure from Europe and the United States.
According to Block Research, Binance’s share of spot market transactions has dropped below 50%, after processing 74% of transactions in September.
The collapse of FTX in November 2020 had a significant impact on the industry, with Binance being one of the heavily affected companies.
Despite these challenges, Binance’s management has continuously denied rumors of bankruptcy and CEO Changpeng Zhao has reassured investors that the exchange has sufficient capital to meet its obligations.
Meanwhile, other trading platforms have been strengthening their positions in the spot market in recent months. Kaiko reported that last week, OKX’s share in the spot market exceeded 50%.
