Binance Market Share Hits New All-Time High, Even as BUSD Plummets

The month of February was volatile for cryptocurrency prices and saw trading volumes increase, although they have remained at historically low levels.

Bitcoin and Ethereum, the two largest digital assets by market capitalization, moved up 0.02% and 1.21% respectively, while Binance has remained the leading cryptocurrency trading platform by trading volume.

According to CryptoCompare’s latest Exchange Review report, while trading volumes in the crypto space rose in February, they are still 71% below their all-time highs, seen in May 2021. The month saw Binance achieve an all-time high market share for both spot and derivative exchanges.

For the fourth month in a row, Binance’s spot market share among Top-Tier exchanges increased, rising from 59.4% in January to 61.8% in February, following a 13.7% surge in spot volumes to $540 billion.

Similarly, Binance’s market share across derivatives exchanges also grew 62.9% to its highest-ever recorded monthly market share.

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According to CryptoCompare, Binance’s stablecoin BUSD experienced a 32.6% fall in market capitalization in February from $15.7 billion to $10.6 billion, which is due to regulatory pressures, including an investigation by the New York Department of Financial Services (NYDFS), an instruction by the regulator to cease the minting of new BUSD tokens, and a Wells Notice from the U.S. Securities and Exchange Commission (SEC).

Despite this, BUSD remained the second most used stablecoin/fiat option across all centralized crypto exchanges. USDT stood out as a winner from BUSD’s debacle, with a monthly increase in market share from 68.7% to 72.0%, while USDC’s market share surprisingly declined by 20 basis points over the same period, CryptoCompare’s report details.

The report also adds that in February, the spot trading market experienced a 10% surge in total trading volumes, marking the second consecutive month of growth. Top-Tier exchanges also saw an uptick in spot volumes, rising 9.23% to $873 billion, while Lower-Tier exchanges saw an even greater increase of 20.4% to $72.1 billion.

Despite the increase, trading volumes continue to hover at historically low levels. According to CryptoCompare, Top-Tier exchanges now comprise 92.4% of the total spot volume, compared to 93% in January.

Top-Tier exchanges are defined based on CryptoCompare’s October 2022 Exchange Benchmark Ranking.

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