As a result of the Securities and Exchange Commission (SEC) lawsuit against Binance.US and Binance, the company’s market share has been steadily declining. This is also in the case of the same sort of exchanges. Overall market share decreased by 4.35 percent. In the case of Binance, however, the company’s market share has increased marginally compared to the previous month. The Block’s data dashboard has appropriately shared all of this information.
Sometime in the beginning of the month of June 2023, the SEC came out with a declaration stating that Binance had been involved in breaking the laws pertaining to security and its association with Binance.US was not at all how it should be. The basic allegation revolved around the fact that the company had shifted capital to various sources that belonged to Changpeng Zhao, the founder of Binance. According to Binance, this was the SEC’s way of trying to stay ahead of all other regulators.
However, the fact remains that this lawsuit filed by the SEC has left a bitter taste with Binance.US. It actually led them to stop carrying out USD-related deposits, along with the delisting of various trading pairs. This has witnessed companies such as Wintermute as well as Keyrock suspend all trading activities on the venue, the resultant factor being the lessening in volumes as well as market depth and a rising slippage.
Slippage, which is the margin between the trader’s price and the ultimate price that is implemented in the case of a $1,00,000 sell order, went upwards from 5.02 to 18.66. In the case of Binance.US’s trading volumes in the period of a month, they remain at $1.69 billion, as compared to $17 billion in the month of March 2023.