Binance.US's market share nosedives after SEC lawsuit

Companies • June 18, 2023, 11:24AM EDT
The Block

Quick Take

  • Binance.US’s marketshare has shrunk in the wake of the U.S. Securities and Exchange Commission’s lawsuit.
  • As of June 18, Binance.US’s market share relative to a group of exchanges declined to 4.35% — a steep decline from more than 16% in April 2023.

Binance.US's market share among exchanges that support USD pairs continues to dwindle in the wake of the US Securities Exchange Commission lawsuit against the firm and global exchange giant Binance. 

As of June 18, Binance.US's market share relative to a group of similar exchanges declined to 4.35% — a steep decline from more than 16% in April 2023 — according to The Block's Data Dashboard. On the other hand, Binance's market share has increased slightly from the previous month. 

Binance.US's exchange volumes. Image: The Block's Data Dashboard.

Earlier this month, the SEC alleged in a suit that Binance violated securities laws, maintained an improper relationship with Binance.US and misdirected capital to other entities owned by Binance founder Changpeng Zhao. Binance described the SEC's suit as "part of a rushed effort to claim jurisdictional ground from other regulators — and investors do not appear to be the SEC's priority."

In any case, the SEC's actions have had a significant impact on Binance.US, which suspended USD deposits and delisted a number of trading pairs. Market makers including Wintermute and Keyrock have ceased trading on the venue, while the exchange has witnessed a decline in volumes, market depth, and an increase in slippage. 

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Sudden increase in slippage

As The Block's data dashboard indicates, slippage — the delta between the price at which a trader places a trade and the price at which it is executed — for a $100,000 sell order surged from 5.02 on June 6 to 18.66 on Sunday. 

Meanwhile, Binance.US's monthly trading volumes currently sit at $1.69 billion — down from over $17 billion in March. 


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].

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