- Binance remained the most dominant exchange despite a 22% drop.
- BNB followed the general market trend with a decline of more than 1% over the last 24 hours.
Recent data indicate Binance Spot trading volume declined in the second quarter. Despite this decline, the company maintained its dominant position in the market.
It is important to note, however, that its dominance has decreased compared to previous years.
Mixed indicators for Binance dominance
Recent data from Coingecko Analysis of the performance of centralized exchanges revealed that Binance continued to dominate the stock market. However, its dominance has suffered some erosion.
Data shows that Binance’s spot trading volume hit a yearly low of $424.7 billion. The decline marks a 22.7% drop from $549.8 billion recorded in May 2024.
Despite these fluctuations, it held a 46.6% share of total spot trading volume among centralized exchanges for the second quarter of 2024.
Furthermore, although it saw an increase in its market dominance from Q1 to Q2 2024, ending the first quarter with a market share of 48.9%, it appears to be losing ground again.
In absolute terms, the exchange generated $1.67 trillion in trading volume during the second quarter of 2024. This is a decrease of 19.8% from $2.08 trillion in the first quarter of 2024.
Historically, Binance’s market share was over 60% around 2022, but it has declined significantly in the following years.
Why Binance’s Dominance Has Diminished Over the Years
Binance The Company’s journey in the industry has been marked by significant challenges, particularly with respect to regulatory issues in various global jurisdictions. These regulatory hurdles have had a significant impact on its operations and competitive position.
In some regions, such as Canada, Binance has had to halt operations entirely due to regulatory constraints. This withdrawal from key markets reflects the broader compliance challenges the exchange is facing.
Moreover, his recent legal troubles in the United States have further complicated his position.
The conclusion of a regulatory investigation resulted in a substantial financial penalty for the exchange and, more importantly, the imprisonment of its former CEO, Changpeng Zhao (CZ).
These developments have affected Binance operational stability and reputation among users and investors.
These setbacks paved the way for other exchanges like Coinbase and Bybit to erode some of the dominance the exchange once enjoyed.
As these competitors continue to grow and profit from their regulatory misadventures, their dominance could diminish further.
BNB Falls
Daily price trend analysis of Binance Coin (BNB) shows that it reflects broader market movements.
On July 29, BNB saw a decline of more than 1.6%, falling from around $584 to around $574 at the end of the session. According to the latest data, BNB is trading at around $573, which is a slight decline of 0.3%.
Source: TradingView
Read Binance (BNB) Price Prediction 2024-25
Despite these recent declines, BNB has remained above the neutral line of its Relative Strength Index (RSI), suggesting that it still retains bullish momentum in current market conditions.