Binance reaches highest market share in history despite BUSD issues
According to CryptoCompare’s latest report comparing cryptocurrency exchange activity in February 2023, Binance confirmed its dominant role by achieving record market shares in the spot and derivatives markets. Binance’s popularity grew despite falling volumes at other major IPOs and US legal issues with the BUSD stablecoin.
CryptoCompare revealed on Wednesday that Binance’s spot market share on the most popular crypto trading platforms increased for the fourth consecutive month, from 59.4% reported in January to 61.8% last month. In the mentioned period, Binance saw a significant increase in its trading volumes in the spot and derivatives markets. Spot transaction turnover increased by 13.7% and reached $540 billion.
“The increase was a surprising departure from the performance of other exchanges, with Coinbase, Bitfinex and Bitstamp all seeing a decline in volumes. Similarly, Binance’s market share across derivatives exchanges also grew to 62.9%, the highest recorded monthly market share ever.”, commented CryptoCompare’s report.
In February, total spot trading volume increased 10% to $946 billion, marking the second consecutive month of volume increases. Top-Tier spot volumes increased 9.23% to $873 billion, and Lower-Tier spot volumes increased 20.4% to $72.1 billion. Despite the increase, trading volumes remain at historically low levels. For comparison, two years ago, the value of monthly volume came in at 3 trillion dollars.
Daily peak level vs. lower level volume. Source: CryptCompare
BUSD has no impact on Binance performance
Two weeks ago The Wall Street Journal reported that cryptocurrency firm Paxos is facing a Securities and Exchange Commission (SEC) lawsuit for violating user protection regulations regarding the issuance of Binances stablecoin called BUSD.
The company decided to stop minting new BUSD tokens, and the cryptocurrency exchange’s CEO, Changpeng ‘CZ’ Zhao, reassured customers by saying that the funds were safe. However, the information caused market panic and resulted in a collapse of BUSD’s market value.
As new tokens were not minted and holders of existing tokens exchanged them for traditional dollars or other stablecoins, the total market capitalization of BUSD fell in February from $15.6 billion to $10.6 billion, which is down 32.6%.
“However, volumes have not responded in a similar manner, with BUSD remaining the second most used stablecoin/fiat alternative across all centralized crypto exchanges,” the CryptoCompare report added.
BUSD trading volume in February tumbled just 2.43% to $176 billion, which is far less than expected following the regulatory pressure that US institutions have begun to exert on cryptocurrency exchanges.
Meanwhile, Binance took a renewed step towards obtaining a license to offer its digital asset services in Singapore. However, it wants to focus on corporate customers, not retail, this time. The company plans to utilize the custody department to shift its focus from private customers to business customers. This move comes after the exchange’s retail operations in the country were suspended last year under pressure from local regulators
According to CryptoCompare’s latest report comparing cryptocurrency exchange activity in February 2023, Binance confirmed its dominant role by achieving record market shares in the spot and derivatives markets. Binance’s popularity grew despite falling volumes at other major IPOs and US legal issues with the BUSD stablecoin.
CryptoCompare revealed on Wednesday that Binance’s spot market share on the most popular crypto trading platforms increased for the fourth consecutive month, from 59.4% reported in January to 61.8% last month. In the mentioned period, Binance saw a significant increase in its trading volumes in the spot and derivatives markets. Spot transaction turnover increased by 13.7% and reached $540 billion.
“The increase was a surprising departure from the performance of other exchanges, with Coinbase, Bitfinex and Bitstamp all seeing a decline in volumes. Similarly, Binance’s market share across derivatives exchanges also grew to 62.9%, the highest recorded monthly market share ever.”, commented CryptoCompare’s report.
In February, total spot trading volume increased 10% to $946 billion, marking the second consecutive month of volume increases. Top-Tier spot volumes increased 9.23% to $873 billion, and Lower-Tier spot volumes increased 20.4% to $72.1 billion. Despite the increase, trading volumes remain at historically low levels. For comparison, two years ago, the value of monthly volume came in at 3 trillion dollars.
Daily peak level vs. lower level volume. Source: CryptCompare
BUSD has no impact on Binance performance
Two weeks ago The Wall Street Journal reported that cryptocurrency firm Paxos is facing a Securities and Exchange Commission (SEC) lawsuit for violating user protection regulations regarding the issuance of Binances stablecoin called BUSD.
The company decided to stop minting new BUSD tokens, and the cryptocurrency exchange’s CEO, Changpeng ‘CZ’ Zhao, reassured customers by saying that the funds were safe. However, the information caused market panic and resulted in a collapse of BUSD’s market value.
As new tokens were not minted and holders of existing tokens exchanged them for traditional dollars or other stablecoins, the total market capitalization of BUSD fell in February from $15.6 billion to $10.6 billion, which is down 32.6%.
“However, volumes have not responded in a similar manner, with BUSD remaining the second most used stablecoin/fiat alternative across all centralized crypto exchanges,” the CryptoCompare report added.
BUSD trading volume in February tumbled just 2.43% to $176 billion, which is far less than expected following the regulatory pressure that US institutions have begun to exert on cryptocurrency exchanges.
Meanwhile, Binance took a renewed step towards obtaining a license to offer its digital asset services in Singapore. However, it wants to focus on corporate customers, not retail, this time. The company plans to utilize the custody department to shift its focus from private customers to business customers. This move comes after the exchange’s retail operations in the country were suspended last year under pressure from local regulators
