Binance, one of the world's largest cryptocurrency exchanges, has experienced a significant decline in market share following the cyberattack on October 29. Binance's share of the total spot trading volume among the top 10 cryptocurrency exchanges has fallen from approximately 48 percent before the attack to 42 percent over the last 7 days.
According to the data, Binance's share was at the 51 percent level in mid-August. With this latest decline, the platform's weight in spot trading volume has dropped to its lowest level in at least 12 weeks. Although the company maintains its leadership in terms of trading volume, the shift of investors toward alternative platforms has increased the market share of rival exchanges.
During this period, OKX's spot trading share among the top 10 exchanges rose from 11 percent to 14 percent. Coinbase's share increased from approximately 9 percent to 9.6 percent, while Kraken was also among the platforms that increased its market share.
ASSET OUTFLOWS AND SECURITY PROCESS
It was reported that $6.3 billion in crypto assets were stolen in the attack on October 29. The U.S. Federal Bureau of Investigation (FBI) linked the attack to North Korea-linked hackers. The North Korean administration, however, denied the allegations.
Blockchain analyses highlighted assessments that the attack could be related to the North Korea-linked group called TraderTraitor. Following the security incident, Binance temporarily suspended crypto asset withdrawals; transactions were resumed on Sunday, November 1.
Following the reopening of withdrawals, net asset outflows from Binance customers reached $5.6 billion. This amount corresponds to approximately 3.5 percent of the company's total assets.
According to the company's internal calculations, the value of assets held on the platform as of Monday, November 2, was at the $157 billion level. The company had announced its total assets as $171 billion one day earlier. The company stated that the effects of the cyberattack, outflows, and changes in crypto prices were taken into account in the latest calculation.
Binance management announced that the outflows, which accelerated after the attack, have begun to slow down. According to the company, hourly asset inflows exceeded hourly outflows around 06:00 Turkey time on November 3. This development was interpreted as a sign that money flows on the platform have begun to normalize.
News Source: 12punto
