As cryptocurrency sentiment improves and trading volumes across global centralized exchanges (CEXs) grow, the dominance of Binance, the world's largest exchange, is on the rise.
It seems to be getting bigger. Last year, it withdrew from the US market and faced a crisis, but recently funds have been pouring into the cryptocurrency market, and it is now boasting its position, accounting for half of the trading volume of all centralized exchanges.
According to the virtual asset analysis platform CoinMarketKep on the 26th, as of the 25th, Binance's daily trading volume was approximately 5.7 trillion yen.
Total trading volume over the past 30 days was $3.5 trillion, exceeding the Nasdaq's trading volume of $3.26 trillion over the same period.
From the 7th to the 15th of last month, Binance accounted for 50% of the total trading volume of centralized exchanges around the world. Prior to this, Binance had been in the spotlight after the founder of the exchange, Changpo
Zhao Changpeng (CZ) resigned on suspicion of aiding and abetting money laundering, and he was effectively removed from the US market. Furthermore, in January of this year, Bitcoin spot exchange-traded index funds began trading in the US.
As a result, the prevailing view was that Binance's competitor Coinbase would benefit in terms of market share.
In fact, in December of last year, Binance’s share (based on CC Data, a research company specializing in virtual assets) was
However, Binance has gradually moved away from major shareholder risk and is steadily growing as the world's largest exchange, accounting for about half of the world's trading volume.
The increasing share of Binance was also evident in March of this year. According to The Block Data, the monthly spot trading volume of CEX in March reached $2.48 trillion (approximately 381 trillion yen).
Of this, Binance accounted for $1.13 trillion (approximately 174 trillion yen), or 45.5% of the total trading volume.
The same phenomenon was seen in the recent bull market in October and November.
Investor sentiment towards virtual currencies will improve, and overall trading volume on centralized exchanges will increase significantly.
The main reason for Binance's rising share is the influx of stable coins. Stable coins are also interpreted as a liquidity indicator within the virtual asset market, but
Cryptocurrency experts have diagnosed that Binance's share will increase because so-called cryptocurrency market liquidity mainly flows into Binance during bullish markets.
Kim Dong Hee-yook, a Dispread researcher, said, "In this bull market, (Binance) is especially interested in Tether (USDT) and USDC.
"There has been a significant increase in the inflow of stablecoins such as Ethereum and Bitcoin Cash," he said. "This appears to be further strengthening Binance's control over trading volume."
"Binance offers the highest liquidity, the most diverse market pairs, and the widest range of derivative products in the world," he continued.
"These factors provide an attractive environment for investors, inducing more trading, especially in a bull market," he said. "In fact, during the March bull market, Binance's spot trading volume share
"Given this background, Binance's influence is expected to become even greater in the upcoming bull market," he added.
Meanwhile, Binance acquired shares in domestic crypto asset exchange Gopax in March last year, marking its re-entry into the domestic exchange industry.
A business change notification form to change the major shareholder has been submitted to the Financial Intelligence Unit (FIU), but it has not yet been accepted, preventing the company from re-entering the domestic market.
2024/11/26 15:54 KST
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