- Binance takes over 98% of Bitcoin spot trading volume with 5% growth since January
- The exchange had $6.8 billion in circulation since February 2022
- Data shows Binance’s dominance attributes to its zero fees for trading, attracting both day traders and long-term investors.
Cryptocurrency exchange Binance saw a 5% increase in the Bitcoin spot trading sector since January 2023. According to data firm Coinalyze, Binance had the highest Bitcoin (BTC) trading volume of 98%, making it the most active cryptocurrency exchange in the world.
The spot trading volume has made it the clear leader in the market, with $6.8 billion in total trades and counting. It saw more user activity after rival exchange FTX collapsed in November 2022, which data assumed were former customers from the fallen crypto platform. Over the past year, Binance’s market share for spot volume has risen to almost 100%, showing no signs of stopping even after US regulators continuously question the stability of the exchange.
Coinalyze also pointed out Binance’s exclusive zero fees when trading BTC. The perk naturally attracts BTC traders and investors to move their funds to Binance or newcomers beginning their crypto ventures there.
Although it gives Binance a competitive edge over other exchanges, such as Coinbase and Crypto.com, it is also the most prone to trade bots and pump-and-dump schemers. Coinbase charges $5-7 per transaction, while Crypto.com has a maximum of 0.4% fee per maker and taker, which makes them less prone to bot manipulation.
CoinMarketCap data shows Binance stays ahead with daily trading volumes of over $21 billion — Coinbase is the only one that competes with Binance’s numbers with more than $1 billion in daily exchange volume at $1.4 billion.
Binance Situations Since FTX
Since the fall of FTX in November 2022, Binance has been under the microscope for several situations with global regulators and bank issuers. Mazars Group, one of the longest-running partner banks in Binance, abruptly stopped working with them after FTX crumbled. Meanwhile, Signature Bank, another partnering bank of Binance, has limited its transactions as transfers are only valid if they are at least $100,000 as of February 1.
Ironically, Binance is the top crypto exchange in the world, although the western continents despise its existence. The US SEC wants hard evidence from Binance regarding its stability after its CEO, Changpeng Zhao, said customer funds are secure. Meanwhile, in the UK and Italy, Binance has been banned.
It used to be available in most countries in South East Asia until governments became more aware of cryptocurrency presence among its citizens. Since then, it has lifted its services from Malaysia and Singapore, where it was once the top exchange. Recently, regulators from Japan demanded Binance stop its services there as well.
Yet, it continues to dominate in the exchanges, especially after FTX lost everything. On the other hand, Binance US is still under a lot of pressure from local regulators.
