In a year plagued by crises like the collapse of FTX and Celsius, data shows that crypto exchange Binance has emerged as the clear “winner” of 2022, according to Arcane Research..
A January 3rd Arcane report stated that Binance saw its dominance in the market during 2022. As of December 28 last year, it had captured 92% of the bitcoin (BTC) spot market and 61% of the BTC derivatives market.:
“There are no clear ‘winners’ in 2022 other than Binance when it comes to cryptocurrency market structure and market dominance. No matter how you look at it from a trading perspective, Binance is the crypto market.”
Binance’s BTC spot market dominance was 45% at the start of 2022, meaning it has more than doubled.while its share of the BTC derivatives market grew by almost a third.
“Spot Trade Volume” is an indicator that measures the total amount of Bitcoin traded on exchanges on a given day..
The report suggests that Binance’s rise to dominance in the BTC spot market predated the collapse of the second largest exchange, FTX, and began to grow after it removed fees for some trading pairs on July 7, 2022..
The exchange has also made some significant acquisitions to boost its global coverage in 2022.such as Japan’s Sakura Exchange BitCoin trading platform and Indonesian digital currency brokerage Tokocrypto.
Binance was one of the few exchanges to increase headcount throughout the yearwhile their peers like Kraken and Coinbase have had to lay off employees during the current crypto winter.
Looking to 2023Arcane predicted in a Dec. 30 report that Binance would reintroduce trading fees in 2023, leading to a “normalization of market dominance.”.
As noted in a Jan. 3 report by digital asset data firm CryptoCompare, Removing fees allows exchanges to attract customers, but they “need to be careful to remain profitable” and “cannot use this strategy for long without hurting their bottom line.”.
Binance may also face regulatory scrutiny in 2023, particularly in relation to its native BNB (BNB) token, as In the wake of the FTX empire, there has been increased focus on cryptocurrency regulations around the world.
An analysis by Bitcoin advocate Nick Carter suggests this Although Binance CEO Changpeng Zhao has been vocal about his support for providing Proof of Reserves (PoR), the PoR provided by Binance was flawed as it “only covers Bitcoin, which only accounts for 1% of its customers’ assets.” 16.5%”..
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