Binance’s BNB token hasn’t kept pace with the recent surge in digital assets, signaling a challenging period for the largest crypto exchange following its legal issues and hefty penalty. Over the past week, while the overall cryptocurrency market rose by about 12%, BNB only saw a modest 1.7% increase, trading at $231 as of Thursday morning.

BNB, known for offering perks like reduced trading fees on Binance, mirrors the sentiment toward the exchange. Amid regulatory probes culminating in guilty pleas for anti-money laundering and sanctions violations, BNB is one of the few major tokens still experiencing a year-to-date loss.

Though Binance continues as a prominent platform for crypto trading and derivatives, its market dominance has dwindled notably. The platform’s share of trading volumes dropped considerably in both spot and derivatives markets throughout the year, raising predictions that competitors like OKX, Bybit, Coinbase, and Bitget may overtake its leading position.

Following the settlement with US authorities, Binance’s founder resigned as CEO, passing the reins to Richard Teng, who faces the challenge of reshaping the company to navigate regulatory hurdles and regain lost market share. Teng aims to maintain the firm’s financial strength while addressing critical issues like formal headquarters, board appointments, and financial transparency.

While Binance’s recent performance hasn’t been impressive, its long-term growth has been substantial. However, the recent legal issues have dampened BNB’s value, viewed as an indicator of Binance’s performance in the market. Despite this setback, the overall upturn in digital-asset prices this year may support Binance’s recovery, signaling optimism amid the US regulatory crackdown on crypto.