According to crypto market researcher Kaiko, it holds the title of the largest exchange. on Binance Transaction volumes have dropped considerably. The data is available on the giant crypto trading platform. bitcoin revealed that the trade volume has reached the lowest level since July 4, 2022.
The researchers found a 30% decline in volume across 13 different pairs, which account for half of the total stock market trade. While the global share of the stock market was around 70% in July 2022, this figure has dropped to 58% today.
Kaiko noted that trading in the BTC-USDT trading pair has declined by 90% in recent days.
Experts associated the reason for the decrease in volume with the commission advantages that ended. Binance has temporarily offered zero-fee trading for its clients on 13 different crypto trading pairs. Commission-free trading ended on March 22, 2023.
Thus, Binance lost 10% of its global crypto trading market share in just one week.
Adding a note to the research report, Kaiko DeFi analyst Riyad Carey explained how Binance increased its share in the past year:
“On March 22, Binance reversed the move, stopping the free trading promotion for 13 BTC spot trading pairs, helping the exchange increase its market share by more than 20% compared to its competitors.
At this point, the impact of zero commission trading on Binance cannot be underestimated.
Because as of mid-March 2023, the trading volume with zero commissions made up the majority of the total volume of the exchange.
Binance’s decision has given its competitors Coinbase and OKX additional market share since Binance ended its zero-fee promotion.”
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