Binance, the cryptocurrency exchange, has begun to recoup its market share in trading volume following its settlement with the United States Department of Justice. After paying a $4.3 billion settlement fine, the company’s market share rose to 49%, marking a significant increase after months of lows due to legal hurdles, according to crypto research firm Kaiko.
The setback began in 2023 when the year started strong for Binance with a 55.2% market share in the spot market, which dipped to 34.3% by September, as reported by CCData. During the same period, Binance saw a net withdrawal of $2.36 billion to $3.35 billion, per analytics firm Nansen and data aggregator DefiLlama respectively, although these figures were disputed by Binance’s then-CEO, Changpeng Zhao, who argued metrics from third-party analytics firms might not be accurate.
Despite the setbacks, Binance announced an impressive gain of 40 million new users in 2023, nearly a 30% increase over the previous year. The platform stressed the growth of its “key services” during this period.
A spokesperson for Binance emphasised their customer-centric approach while moving forward. The representative stated, “At Binance, our focus is always on prioritising our users. Users can trust our platform as we transition into this new phase of Binance’s journey.”
The $4.3 billion settlement with Binance was officially declared by U.S. authorities on Nov. 21. According to the Attorney General, Merrick Garland, the settlement would cover “civil regulatory enforcement actions” initiated by several government departments, including the Treasury Department and the Commodity Futures Trading Commission.