Binance’s market share is at lowest level this year; Marathon Digital suffers from mining operations due to weather conditions; The number of spot trading pairs on exchanges is declining
Binance, one of the most popular exchanges in the crypto industry, has begun to lose interest with the consecutive bad news.
Binance lost control when the US Securities and Exchange Commission (SEC) filed a lawsuit in June. After being under scrutiny in Europe after the regulators in the USA, it began to lose the trust it had gained over the years.
A blow came to Binance, which could not get out of the swamp of trouble for almost the last month, when senior employees left the company. Recently, sudden resignations in the stock market have stumped Binance. Faced with challenge after challenge, the stock market’s market share is now threatened.
Binance, the largest cryptocurrency exchange by trading volume, continues to report a significant drop in market share.
According to the allegations, Binance’s senior executives resigned this week after the exchange’s CEO, Changpeng Zhao, addressed regulatory inquiries into the company.
Senior officials at the company, including Binance’s general counsel Han Ng, chief strategy officer Patrick Hillmann, and compliance SVP Steven Christie, told Zhao that they were leaving the company.
However, the company’s market share of 72 percent in January is now 58 percent.
Marathon Digital suffers from mining operations due to weather conditions
Bitcoin mining company Marathon Digital cited the weather conditions in Texas as the reason for the decrease in the amount of Bitcoin mined in June.
According to the statement made by Marathon Digital, the amount of Bitcoin issued by the company in June decreased by 21% compared to the previous month.
The main reason for the drop in June, when 979 BTC was mined, was the effect of weather conditions in Texas, where Marathon’s main operations are located.
Reduced production compared to last month was driven by weather-related outages in Texas and a significant drop in transaction fees.
According to data from the state’s National Weather Service, a jump of about 8.4 degrees Fahrenheit was recorded in average temperatures between May and June. While May measured an average temperature of 75.6 degrees Fahrenheit, it rose to 84 degrees Fahrenheit in June.
Previously, difficulties were observed in mining operations due to adverse weather conditions in Texas.
In July 2022, Peter Wall, CEO of crypto mining company Argo Blockchain in West Texas, stated that they had to temporarily shut down their operations.
According to data from Coin Metrics, Bitcoin miners generated $184 million in transaction fees in the first quarter of 2023. That’s more than the sum of all of 2022.
The number of spot trading pairs on exchanges is declining
Spot trading pairs on cryptocurrency exchanges continue to decline.
Especially due to pressure from regulators, major cryptocurrency exchanges had to reduce the number of spot trading pairs.
Major cryptocurrency exchanges such as Binance and Coinbase have reduced their spot trading pairs throughout the year.
According to the data, while the monthly spot trading pairs on Binance, the world’s largest cryptocurrency exchange, were at 1420 in January, this number dropped to 1380 in July. Binance US, the company’s US arm and targeted by the US Securities and Exchange Commission (SEC), fell from 337 to 184 from June to July.
The US Securities and Exchange Commission’s consecutive targeting of Binance and Coinbase in June played a large part in the decline of spot trading pairs. The regulator accused both exchanges of unregistered sale of securities.
Coinbase’s spot trading pairs count dropped from 557 in March to 524 in July.
The number of trading pairs of another US-based crypto exchange Kraken also decreased from 668 to 651.