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US Crypto Exchange Binance Faces Challenges as Market Share Plummets to 0.20%

Binance.US has recently reduced its trading fees to near-zero in an effort to revitalize its waning market presence.

The exchange is now offering 0% maker fees and a mere 0.01% taker fee on over 20 popular cryptocurrency pairs, including Ethereum and Cardano.

This fee adjustment comes in response to a significant decline in trading volume, with Binance.US now holding only 0.20% of the U.S. dollar-supporting exchange market, down from around 10% last year.

The drop in activity is largely attributed to the Securities and Exchange Commission's (SEC) lawsuit, which brought considerable regulatory scrutiny and led to diminished user trust.

Despite the SEC dropping its case against Binance, trading volumes have remained low as the platform lost substantial market share to competitors like Coinbase and Kraken.

Binance.US's recent fee cuts aim to position it as the lowest-cost option in the U.S. market, yet experts are uncertain if this tactic will effectively recover the lost user base.

The exchange’s challenges are further compounded by an ongoing trust deficit stemming from its previous operational difficulties, including a lengthy suspension of fiat services.

As institutional adoption continues to lag, Binance.US faces an uphill battle, particularly against rivals that have solidified their dominance in a recently more accommodating regulatory environment.

Future growth will depend on the platform's ability to regain user confidence and navigate the evolving landscape of U.S. crypto regulations.

With a mix of aggressive pricing and a focus on expanding product offerings, Binance.US aims to rebuild its reputation and market presence in 2025.