According to recently published data from CryptoCompare, Bitcoin (BTC) is currently trading at a premium of more than 1% on Binance.US. This is despite the fact that the exchange’s USD trading volume has dropped to new lows following the U.S. Securities and Exchange Commission’s (SEC) lawsuit against the company. BTC is currently trading above $26,000 on Binance.US, surpassing the prices of major rivals like Kraken and Coinbase with over $150 as of press time.
USD Volume Significantly Slowed Due to Banking Partners’ Decision
Despite the BTC premium, USD volume on the exchange has slowed significantly. According to the same CryptoCompare data, USD volume on Binance.US has dropped from a peak of over $684 million recorded on March 14 to less than $25 million. This decline can be attributed to the decision of the exchange’s banking partners to halt USD payment channels by June 13. As a result, Binance.US has announced that it will transition to a crypto-only platform due to regulatory issues.
Market Share Drops Following SEC Lawsuit
Data from Kaiko suggests a correlation between Binance.US’s declining trading activities and the SEC lawsuit. The company’s market share, compared to other U.S. exchanges, dropped to 4.8% after the lawsuit, down from 20% in April. Meanwhile, Coinbase’s market share surged from 46% to 64% within a week of its own SEC lawsuit.
Market Depth Drops Significantly Following SEC Lawsuit
Kaiko’s data also indicates that Binance.US’s market depth dropped by 78% within a week of the SEC filing a lawsuit against the company for violating federal securities law. During the past week, the exchange’s market depth for 17 tokens dropped to just $7 million from the $34 million recorded on June 4 — a day before the SEC’s lawsuit. Market makers and traders left the exchange due to concerns about potential asset lock-ups. On June 6, the SEC moved to freeze Binance’s U.S. assets, arguing that this action was needed to ensure the safety of customers’ funds.
Despite trading at a premium, Binance.US’s declining trading activities have resulted in a significant drop in USD volume. The exchange’s market share has also dropped, while its market depth has decreased significantly following the SEC lawsuit.