Binance dominates crypto exchange market with 61.8% share despite rampant FUD
Binance’s market share rose from 59.4% in January to 61.8% in February, according to a new report from crypto market data provider CryptoCompare.
The report also reveals that Binance, the world’s largest centralized cryptocurrency exchange, has soared its spot trading volume by 13.7% to reach $504 billion, reaching an all-time high market share. .
Coinbase, second only to Binance by trading volume, traded $39.9 billion in February, down 29% from the previous month. Kraken dropped 11% to his $19.3 billion, putting him in third place.
Binance’s market share across derivatives exchanges grew to 62.9%, the highest monthly market share ever recorded for an exchange. OKX and Bybit follow with 14% and 13.3% market share respectively.
Why Is Binance So Dominant?
Binance’s introduction of zero-fee bitcoin trading is a key factor.
In July 2022, to celebrate its 5th anniversary, Binance declared zero fees on 13 Bitcoin spot pairs. Since Bitcoin accounts for a significant portion of crypto market trading volume, the removal of BTC transaction fees has had a significant impact on the overall dominance of spot trading volumes.
Despite the bear market, Binance ramps up its global expansion efforts. Recently, we have successfully registered as a financial services provider in New Zealand and are also registered in the French, Spanish and Italian markets such as South Korea and Japan. Analysts believe this global expansion likely brought an influx of new traders to the exchange, thereby increasing its trading volume advantage.
Not yet – lots of ongoing FUD against Binance
However, fear, uncertainty, and suspicion continue to surround Binance with news that regulators in the United States and other countries are beginning to step up scrutiny of exchanges.
Co-founder and CEO Changpeng Zhao said in a recent Twitter AMA on March 9 that the exchange’s focus will shift to product development, refinement, and education as trading volumes increase. .
“We will continue to focus on product development,” CZ said at the AMA. “We protect our users. We build and build,” he later said. murmured.
However, on March 5th, an article appeared in the newspaper. wall street journal This was intended to reveal an internal Telegram message from the CEO suggesting that Binance has a closer relationship with Binance.US than previously disclosed.
In response, CZ tweeted “4” last week. This is in reference to a previous tweet reminding his 8.2 million followers to “FUD, fake he ignores news, attacks, etc.”
4 quickly became a meme on cryptocurrency Twitter, with users uploading pictures of themselves with four fingers up.
TheFUD “just increases our exposure and publicity. Right now, most users are very smart and we really only want smart users on our platform,” CZ said. .
Binance still looking for Voyager client
In a Twitter AMA on March 9, CZ said he and Binance remain committed to seeing the Voyager transaction go through.
“We are still committed to Voyager and are very committed to getting that deal and helping our users there,” he said.
However, CZ also revealed that Binance has scaled back some promises, saying the US has a more negative view of the industry in terms of regulatory clarity and adoption stance.
“America doesn’t look good this year.”
