Shrinking Market Share
Binance, the largest cryptocurrency exchange, is losing its market grip, which is reflected in its reduced market share and declining activity on the Binance Smart Chain (BSC). This trend threatens the performance of BNB in the fourth quarter.
Market Share Drop
Eleven months have passed since Binance reached an agreement with the U.S. Department of Justice, paying a record $4.3 billion fine and seeing its CEO step down. Despite having time to recover, Binance continues to lose ground. Its current market share stands at 36.6%, the lowest since 2020.
Binance has shown the worst performance among centralized platforms, losing 5.3% of its market share since the beginning of the year. In contrast, Crypto.com grew by 8% during the same period.
Declining DeFi Activity
In decentralized finance (DeFi), Binance has experienced a 26% drop in Total Value Locked (TVL) on BSC since March, reaching $4.5 billion. Meanwhile, Solana recorded a 14% increase, hitting $5.5 billion in TVL during the same period.
Reduced Network Activity
Recently, BSC saw a decline in network activity. Unique active addresses dropped from an average of 400,000 to 250,000, while the number of transactions fell from 600,000 to 450,000.
Conclusion: Future Outlook for Binance
Despite remaining the largest crypto exchange, with a cumulative trading volume reaching $100 trillion, current trends do not favor Binance. These patterns suggest that BNB may underperform compared to other leading cryptocurrencies in the final quarter of 2024.
