In a recent report released by Kaiko, the ongoing banking crisis and regulatory crackdown have significantly impacted the cryptocurrency market structure, causing shifts in the dynamics among the world's largest exchanges. Binance, the leading exchange with a 54% dominance, has experienced a 16% loss in market share of trade volume over the past two weeks.

The decline follows a lawsuit by the Commodity Futures Trading Commission (CFTC) and Binance's decision to terminate its zero-fee trading program. Despite these setbacks, Binance continues to maintain its position as the largest exchange globally. However, the uncertain market conditions and increasing regulatory scrutiny may further affect the exchange's standing in the future.

The report also highlights the impact of an uncertain regulatory outlook on major crypto exchanges. Bittrex has closed its U.S. operations, while Coinbase, known for its strong regulatory efforts, received a Wells Notice and saw its market share drop from 60% to 49% in Q1.

 Meanwhile, the trade volume soared to 4-month highs in mid-March, driven by a broader market rally. Volumes, however, started to decline sharply after Binance ended its zero-fee program.