Binance, once the undisputed leader in Bitcoin trading outside the U.S., is facing increasing competition as its market share dwindles from 81.3% to 55.3% over the past year. The decline, attributed to the removal of its large-scale Bitcoin zero-fee promotion, reflects a shifting landscape where smaller exchanges are gaining ground.

Data from Kaiko reveals a similar trend in smaller altcoins, with Binance's share declining from 58% to 50.5%. This shift underscores the growing competition in the market, fueled by the resurgence of trading volumes and the expansion of platforms like Bybit and OKX, particularly in regions like Asia.

Bybit, in particular, has seen a remarkable surge in its share of non-U.S. Bitcoin trading, skyrocketing from 2% to 9.3%. Similarly, OKX has witnessed a significant gain, climbing from 3% to 7.3%. Other platforms like Bullish, MEXC, and Bithumb have also experienced notable increases, indicating a broader diversification of trading activity.

However, Binance is not without its challenges. The exchange's $4.3 billion deal with U.S. regulators has imposed certain restrictions, affecting its operational dynamics. Binance COO Noah Perlman acknowledges the complexities posed by the monitoring agreement, referring to the U.S. as an "authorized referee." Despite these challenges, Perlman views the agreement as an opportunity for improvement, emphasizing the exchange's commitment to enhancing its programs and procedures in response to regulatory scrutiny.