The move comes as spot trading volume at Binance, the world's largest crypto exchange, dropped 48.1% to $287B in April amid increased regulatory scrutiny and internal issues, representing its second-lowest monthly trading volume since 2021, crypto data provider CCData reported earlier this month. That pulled its market share down to 46.3% -- the lowest since October.
Earlier this month, CCData reported that trading volume on Binance experienced a consecutive monthly decline in April, plunging by 48% due to decreasing transaction levels throughout the industry.
Bitcoin was trading at about 20% discount on Binance’s Australia arm on Tuesday, compared with rival exchanges, according to data from CCData.
This comes after Binance Australia halted Australian dollar bank transfers earlier this month, citing its third-party payment service provider as the issue and said that it's working to find an alternative. Binance Australia will allow AUD withdrawals until June 1.
“The announcement from Binance prompted traders to sell their BTC/AUD pairs, resulting in the price reaching a historically high discount,” said Hosam Mahmoud, Research Analyst at CCData in a conversation with CoinDesk.
Binance’s market share has shrunk since it ended a zero-fee promotion in March and as the Commodity Futures Trading Commission’s lawsuit against it unnerved some traders. Its portion of spot volume dropped from a February peak of about 63% to 44% in early May, while for derivatives it fell from 77% in March to 66% as of last week, according to CCData.
Gemini might be better off staking its future overseas. The firm recently launched a derivatives exchange, Gemini Foundation, in a number of jurisdictions outside of the US, UK and European Union. It also announced plans to set up an engineering hub in India. Derivatives trading accounted for nearly 78% of the total crypto market last month, according to a report from CCData.
Even before the UST collapse, the stablecoin market was already seeing declines. But the crash further hastened the drop. CCData reported that stablecoins’ total market cap fell by 0.45% in May, making it the 14th consecutive month of decline.
The total market capitalization of stablecoins dropped to $130 billion in May, falling to the lowest level since September 2021, digital asset data firm CCData noted Tuesday in a market report. The stablecoin market has been in a continuous decline since March 2022, per CCData.
The amount of USDC tokens, the stablecoin issued by US-based operator Circle, on centralised exchanges is at its lowest level since March 2021, CCData has found.
Binance lost 18% of its global market share to Asian exchanges since dropping its zero-fee spot trading promotion in March. Its global share of spot trading volume dropped to 46.3% in April, according to CCData.
Tether has continued to extend its lead in the stablecoin market after Circle Internet Financial’s USD Coin broke from its one-to-one peg to the dollar in mid-March. Circle disclosed that it had $3.3 billion of the stablecoin’s reserves tied up in the collapsed Silicon Valley Bank.
Since then, tether’s market cap has gained about $10 billion to nearly $83 billion, nearing its record market cap, according to CCData. The market cap of USD Coin, its nearest rival, has shrunk by about $10 billion to just under $30 billion.
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