Binance, the world’s leading cryptocurrency exchange, experienced a continued decrease in market share during June. The decline coincided with the U.S. Securities and Exchange Commission’s (SEC) lawsuit against the exchange and its founder, Changpeng Zhao.

According to CCData, Binance’s spot market share in June declined to 41.9% from the previous month’s 43%. This marks the fourth consecutive monthly decrease for the exchange, reaching its lowest level since August 2022. Despite the decline, Binance still maintains a significant lead as the world’s largest crypto exchange.

Competition in the Market

While Binance‘s market share decreased, other exchanges made marginal gains. The Seychelles-based OKX secured the second position with a market share of 5.44%, closely followed by Coinbase at 5.37%. These figures highlight the competitive landscape of the cryptocurrency exchange industry.

Factors Behind the Decline

The SEC lawsuit against Binance and its founder may have contributed to the softening of Binance’s market share in June. However, the decline began four months earlier when Binance discontinued its no-fee trading promotion for 13 bitcoin spot trading pairs, including BTC-USDT, on March 22. This decision had a noticeable impact on the exchange’s market share.

Impact on Binance.US

Binance’s U.S. subsidiary, Binance.US, also faced legal action from the SEC, leading to a decline in its market share. CCData reports that Binance.US witnessed its market share drop from 1.18% to 0.39% during June.

Coinbase’s Market Share Stability

Coinbase, another prominent exchange targeted by the SEC, experienced relatively stable market share during June. The exchange maintained a market share of 5.37%, only a slight decrease from the previous month’s 5.43%. This indicates resilience in the face of regulatory challenges.