According to the most recent information, moves involving Binance.US and Coinbase have been the talk of the cryptocurrency market. Due to an ongoing regulatory lawsuit, Binance.US, the top cryptocurrency exchange in the US, has seen its market share significantly fall. In contrast, Coinbase, another notable development, has seen an increase in its market share.
Loss of Market Share for Binance.US
Binance.According to information from Kaiko, which was cited by Reuters, US, the US-based division of Binance, has seen its market share decline from over 22% in April to a meagre 0.9% as of June 26. The authorised action taken by the U.S. Securities and Change Fee (SEC) against Binance may be to blame for the drop.US, CEO Changpeng “CZ” Zhao, and Binance.
According to the SEC, Binance.US has operated as an unregistered securities exchange. This lawsuit is in response to a similar complaint filed by the Commodity Futures Trading Commission against Binance and CZ earlier this year.
The Market Share of Coinbase Rises
In contrast, Coinbase, another significant player in the bitcoin exchange industry, has seen an increase in its market share. According to data from Reuters, Coinbase’s market share increased from roughly 48% to 55% in the U.S. in June. This increase may be explained by Coinbase’s inclusion as a surveillance associate in a number of SEC filings related to asset managers’ introduction of spot Bitcoin exchange-traded funds (ETFs).
The volume of purchases and sales on the cryptocurrency market have increased dramatically, topping an amazing $2.7 trillion in combined spot and derivative purchases and sales. However, this increase has also been influenced by improved investor sentiment as a result of BlackRock’s most recent application for a spot Bitcoin ETF. It’s important to note that the SEC has rejected numerous applications from various companies and has not yet accredited any spot cryptocurrency ETFs in the United States.
Market Dynamics in general
The long-term picture of bitcoin exchanges is changing as a result of these regulatory and commercial developments. Currently, Binance.US is dealing with legal issues, which has caused a sharp drop in its market share.
Coinbase is profiting from its role as a surveillance partner in the meantime and enjoying an increase in market share. The results of regulatory decisions and those exchanges’ ability to negotiate the changing landscape will be crucial in determining how they develop in the future.
As supporters and buyers, it is advisable to keep a close eye on these changes as they may have a significant impact on the bitcoin ecosystem.
