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Binance.US is experiencing a significant decline in market activity
The lawsuit filed by the US Securities and Exchange Commission against Binance.US has damaged the exchange. The figures showed its market share has recently fallen below 5%, while its market depth has fallen by more than 75% since the start of June. In addition to the lawsuit, the regulator issued an injunction against Binance.US to freeze its assets. The company took immediate action and removed more than 100 trading pairs from its platform. Loss of Dominance in America According to Kaiko, Binance.US' market share has fallen from around 20% in April to less than 5% currently. The decline was in May and early June...
Binance.US is experiencing a significant decline in market activity
The lawsuit filed by the US Securities and Exchange Commission against Binance.US has damaged the exchange. The figures showed its market share has recently fallen below 5%, while its market depth has fallen by more than 75% since the start of June.
In addition to the lawsuit, the regulator issued an injunction against Binance.US to freeze its assets. The company took immediate action and removed more than 100 trading pairs from its platform.
Loss of dominance in America
According to Kaiko, Binance.US market share has fallen from around 20% in April to less than 5% currently. The decline was clearly visible in May and early June.
A possible reason for this month's decline could be the SEC's legal pressure. The watchdogfiledOn June 5, the company filed a lawsuit against Binance and its American subsidiary, asking a federal court to issue an injunction freezing the marketplace's US assets.
Shortly afterwards the companydelisted101 trading pairs on its platform including AAVE/USDT, MANA/USDT, BCH/BTC, DOT/BTC, MANA/BTC, XTZ/BTC and more.
Other cryptocurrency exchanges that have seen their market share decline recently include Kraken and Bitstamp. Interestingly, Coinbase is on the opposite corner. Despite the SECAfter the lawsuit was also filed against it, the company led by Brian Armstrong's market share in the USA rose from 46% to 64% in the last seven days.
Market share of US stock exchanges, Kaiko
The market depth is decreasing
Another negative outcome of the SEC lawsuit appears to be Binance.US’ dwindling market depth. The volume indicator, which refers to the level of liquidity and shows how much a large order affects the price of an asset, fell from $34 million on June 4 to just $7 million on June 12.
“The sharp drop in liquidity suggests that market makers are nervous and want to avoid volatility-related losses and the non-negligible possibility that their assets could get stuck in an exchange collapse à la FTX,” Kaiko explained in its report.
Binance US Market Depth, Kaiko
In comparison, Coinbase's market depth is down 16%, while Binance's global exchange is down 7% month-to-date.
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