The year 2022 was particularly crucial for the ecosystem, especially with the fall of FTX. And that only strengthened an already major platform: Binance. Focus on Changpeng Zhao’s empire.
Binance takes the place of FTX
The trading volumes displayed by Binance were already much higher than its direct competitors, but the fall of FTX only made matters worse. December was the first month after the bankruptcy of Sam Bankman-Fried’s platform, and we can see that this greatly benefited its biggest competitor at the time.
Binance has indeed arrogated 77.8% of cryptocurrency spot trading volume over the past month, according to data shared by The Block. This is an all-time high for the platform. For comparison, Coinbase gathered over the same period “only” 9.8% of the trading volume. As a reminder, Binance has been one of the most vocal platforms on the need to provide better guarantees to users, in particular with the creation or supply of several emergency funds.
The result is that users seem to have moved to known platformsrather than less renowned players within the ecosystem:
“Binance was already a dominant player in this space, and the exchange was quick to try to restore trust and help the industry. »
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The big winner of 2022?
A sentiment confirmed by analysts at Arcane Research, who also claim that Binance has in itself become the crypto market on its own:
“There is no other “winner” of 2022 […] when it comes to crypto market structuring and dominance. Regardless of how trading activities are viewed, Binance is the crypto market.»
With a figure that makes you dizzy: over the year that has just ended, Binance managed to capture 92% of Bitcoin (BTC) spot trading. And these performances should continue, according to analysts, who predict that a return of transaction fees is to be expected on the platform.
However, this will have to face some obstacles. Already, his proof of reserve has been criticized, and the company that carried out his audit finally retracted. In France, the platform was accused of benefiting from a certain laxity of the government and the AMFwhich would have allowed her to promote herself when she had no right to do so.
Still, Binance is moving forward, and its hegemony today seems little threatened. The Changpeng Zhao platform should therefore continue to capture very large market shares in 2023.
👉 On the same subject – “Complacency” by Emmanuel Macron and the French government? 15 investors file a lawsuit against Binance
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Source: The Block Data & Insights – Image: Web Summit via Flickr(CC BY 2.0)
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