KuCoin Market Share Plunges By 50% Amid Legal Tussle With US Authorities
KuCoin’s market share has recorded a significant decline, falling from about 6.5% to less than 3% due to massive outflows of funds. This is according to a Kaiko data report on April 2.
The market share decline follows a back-to-back lawsuit filed against the US Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) on March 26.
As detailed in the Kaiko research report, the exchange’s daily trading volume fell from $2 billion to $520 million, resulting in a dip in its market share.
Notably, KuCoin market customers are continuously moving their funds to other exchanges such as Binance, Coinbase, Gate.io, OKX, and MEXC, which they arguably find safer.
Market makers leaving the exchange account for some of these outflows, while other customers are transferring funds directly to their own self-custodial wallet
According to the data, outflows from KuCoin wallets, most of which were USDT and ETH, were estimated to be over $600 million on March 26, exceeding inflow by a large margin. Recall that the exchange recorded over $1 billion in outflows within 24 hours on March 27.
Kucoin users have been moving their funds to other centralized exchanges such as Coinbase, Binance, OKX, MEXC, and https://t.co/H39mEDF3Cm, which they perceive as safer options. pic.twitter.com/FaslOOs1m3
— Kaiko (@KaikoData) April 3, 2024
In the same vein, data from Nansen revealed on March 27 that the exchange had recorded outflows of over $842 million on Ethereum and $938 million on Ethereum-Virtual Machine (EVM) chains from an initial storage of $6 billion.
An update on @kucoincom withdrawals
At the time of writing, over the past 24 hours, there has been an outflow of over $842m on Ethereum and $938m on EVM chains from an initial $6b base
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