Binance Market Share Jumps to 49% in 2024, Post CEO Departure

In January 2024, Binance, the largest cryptocurrency exchange globally, saw a significant rise in its market share, reaching 49%. This increase comes after a notable period of low performance in 2023. The boost in market share is attributed to several key factors, including strategic decisions and industry trends.

Binance’s comeback began with its legal settlement with the U.S. Department of Justice in November 2023. This event marked a turning point, despite the departure of its former CEO, Changpeng Zhao, a prominent figure in the crypto world. The settlement initially did not seem to affect Binance’s trading volume. However, developments in the following months would significantly change its fortunes.

In December, Binance reintroduced zero-fee trading promotions for major cryptocurrencies such as Bitcoin, Ethereum, and XRP. This move aimed to increase the demand for its stablecoin, First Digital USD. The zero-fee strategy was not new to Binance; it was a key factor in the exchange’s growth in 2022. The termination of this program last year led to a substantial drop in trading volumes, underscoring its importance.

Moreover, the crypto industry saw heightened interest in early January, especially with the hype around Bitcoin spot ETFs. This interest boosted overall trading volumes. According to CryptoQuant data, Binance experienced a significant influx of stablecoins, indicating increased buying and trading activity.

Despite these positive developments, Binance’s market share is still below its peak of 65% in 2023. In their report, Kaiko, a leading crypto market researcher, noted, “The exchange has proven to be mostly resilient in the aftermath of the settlement.”