Binance.Us lists a significant drop in market activity

Binance.Us lists a significant drop in market activity

The lawsuit submitted by the US stock exchange supervision SEC. The numbers showed that its market share has recently dropped below 5 %, while its market depth has dropped by more than 75 % since the beginning of June.

In addition to the lawsuit, the regulatory authority issued an injunction against Binance. The company took immediate measures and removed more than 100 trading pairs from its platform.

Dominance loss in America

According to Kaiko, the market share of Binance has fallen from about 20 % in April to less than 5 %. The decline was clearly recognizable in May and early June.

A possible reason for the decline this month could be the legal pressure of the second. The watchdog put off On June 5, the company submitted a lawsuit against Binance and its American subsidiary and asked a federal court to issue an injunction to freeze the US assets of the marketplace

shortly afterwards the company decoted 101 trading pairs on its platform, including aave/usdt, mana/btc, DOT/BTC, Mana/BTC, XTZ/BTC and more.

Other cryptocurrency exchanges, the market share of which has recently declined, are octopuses and Bitstamp. Interestingly, Coinbase is on the opposite corner. Despite the SEC After the lawsuit has also been submitted, the market share of the company in the United States has risen from 46 % to 64 % in the United States.

Market share of the US exchanges, Kaiko

The market depth takes off

Another negative result of the SEC lawsuit seems to be the dwindling depth of market by Binance.Us. The volume indicator, which refers to the level of liquidity and indicates how much a large order has a value on the price of a financial value, fell from $ 34 million on June 4 to just $ 7 million on June 12th

"The severe decline in liquidity indicates that the market makers are nervous and that volatility-related losses and the possibility that are not negligible want to avoid that their assets could get stuck in the event of a collapse of the stock exchange à la FTX," said Kaiko in his report.

Market depth of Binance Us, Kaiko

In comparison, the market depth of Coinbase has dropped by 16 %, while Binance's global stock exchange has fallen by 7 % since the beginning of the month.

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