There was a significant decline in user activity on Binance this month. According to K33, trading volume on the platform decreased by 57% compared to other exchanges in the past seven days, while spot trading on Coinbase saw a 9% increase during the same time.
Analysts attribute this decline to the pressure from regulatory authorities in multiple countries, with the United States being the most affected.
The SEC filed a lawsuit against Binance and CEO Changpeng Zhao in June for allegedly processing transactions with unregistered securities.
Additionally, the US Department of Justice is reportedly preparing a lawsuit against Binance.
Market makers are leaving the exchange, fearing that it will no longer be able to operate in the US, leading users to move to other platforms that have not yet faced regulatory action.
As a result, these other exchanges have seen a significant increase in trading activity.