Binance, the world’s largest cryptocurrency exchange by trading volume, faces significant challenges as its market share continues to decline, according to a recent Bloomberg report.

In September, Binance participated in trading volume share of the roughly $2 trillion digital asset market fell to 36.6%, down sharply from 42.7% at the beginning of the year and the lowest level in four years, according to CCData.

Binance spot and derivatives trading hits four-year lows

The decline in market share is particularly pronounced both in the area of ​​spot transactions and derivatives trading. Binance has a 27% stake in cash market represents the lowest level since January 2021, and the share of derivatives trading is 40.7%, also the lowest in four years.

According to reportthis decline can be attributed to the legal problem that the exchange has been experiencing since last year around the world, but especially in the US, which not only had a noticeable impact on the exchange’s financial indicators but also led to changes in its management.

The company is under increased scrutiny around the world following: settlement last year with the US Department of Justice (DOJ) over sedate allegations including sanctions violations that led to a massive $4 billion fine.

The consequence of these regulatory actions was the resignation of co-founder and former CEO Changpeng Zhao (CZ), who served four months in prison as part of the proceedings. However, the former CEO was released by US authorities last Friday after serving his sentence.

In an effort to rebuild trust and navigate the regulatory landscape, Binance has appointed Richard Teng, a former regulator, as its up-to-date CEO. Teng has been actively working with regulators investigating Binance in various jurisdictions as well appointment up-to-date management and intentions to establish a up-to-date headquarters.

Centralized cryptocurrency exchanges are struggling with a 17% decline in volume.

The report further highlights that the broader market for centralized cryptocurrency exchanges is also facing challenges, with combined spot and derivative trading volumes down 17% in September.

However, this decline is typical for a month that is often seasonally frail, but it resulted in the lowest month commercial activities from June. Notably, Binance saw the most severe decline in market share among the top exchanges as competitors such as Bybit, Bitget, and Crypto.com began to gain more market share.

Jacob Joseph, senior research analyst at CCData, noted that this trend may indicate growing confidence among cryptocurrency participants in alternative platforms that “offer similar user experiences,” including low transaction fees, minimal slippage and high market liquidity.

Despite the challenges, Binance recently achieved a significant milestone by becoming the first centralized platform cryptocurrency exchange According to CCData, the transaction value will exceed USD 100 trillion over the entire trading period.

At the time of writing, the exchange’s native token, BNBcurrently the fourth-largest cryptocurrency on the market, it is trading at $545, up just 1% in the past 24 hours amid a broader market decline.

Featured image from DALL-E, chart from TradingView.com