The Binance exchange platform has imposed its supremacy on the sector, and has established itself as the dominant exchange, far surpassing its main competitors.
Binance is currently the largest cryptocurrency exchange in the world, with a ecosystem already very well developed : an exchange, two tokens, a network, a launchpad system for launching new projects but also an incubator, an NFT platform and more. Co-founded by Changpeng Zhao, commonly known as CZ, the latter is the emblematic figure of the exchange, in addition to the current CEO. Very appreciated and respected within the crypto sphere, CZ is one of the leading figures of the crypto industry, capable of making rain or shine on the course of certain tokens.
But still, thanks to the launch of Binance in 2017 and the BNB token thereafter, it has been able to occupy a place of choice among the wealthiest people in the world. According to Bloomberg, his fortune was estimated at 96 billion dollars last January. The crypto industry having been hit by a bear market for several months, the fortune of “CZ” has fallen considerably, but remains very important.
According to the Bloomberg Billionaires Index last updated on September 28 this year, Changpeng Zhao is located in 35th place, with more than $30 billion in wealth. At his best time, CZ was among the 10 richest people on the planet but also the wealthiest Asian personality. Watch out for the next bull run, which could propel Changpeng Zhao to new heights.
Incredible growth for Binance
It might be reductive to coldly associate Binance and the entire crypto ecosystem, but there is no doubt that the exchange is one of its most resilient pillars. Indeed, while many exchanges suffer during the bear market, Binance is on the contrary always stronger. But still, the year 2021 was particularly successful for the exchange platform, with nearly $7.7 trillion traded on its platform, a record in this area.
According to the statements of Changpeng Zhao, the year 2022 should know the same success. Despite all the problems related to country regulations, prohibitions or even banishment in certain countries, Binance remains the trading platform of choice with a carefully selected palette of altcoins and a range of varied financial products.
- +300 billion dollars in valuation at the start of 2022
- $20 billion in revenue in 2020
- +90 million registered users on the platform
- $76 billion (record) in daily one-day volume
- 7x more spot trading volume in 2021 than in 2020
- 387 cryptocurrencies listed
- +150 million monthly visitors (February 2022)
Large-scale economic results
For legal reasons, the crypto exchange had to open a specific branch for US investors, Binance US, which was born in 2019 and has continued to grow. According to data from April this year, Binance US is gradually catching up on US soil with its rival Coinbase.
The Binance-linked exchange would have a $4.5 billion valuation while Binance (without Binance US or its derivatives depending on the country) is obviously more valued. Indeed, the exchange is also bringing in significant revenue, with gains over 2021 that would be three times greater than those made by Coinbase.
For the transaction volume, have found similar dynamics, Binance having figures at least 4-5x higher than its main rivals, Coinbase or even FTX. In January 2022, Binance’s daily average was 26 billion daily on the Spot market and 80 billion daily on derivatives while Coinbase only reached 6 billion daily (Spot market) over the same period.
If we refocus on the main assets traded within the crypto market, Bitcoin and Ethereum, Binance is well ahead compared to other exchanges.
Using data from CoinMarketCap, on today alone, Binance through the BTC/BUSD and BTC/USDT pairs is responsible for more than 25% of the transaction volume related to Bitcoin. For Ethereum13% of transactions are carried out on Binance, well ahead of competing exchanges such as FTX, Coinbase or KuCoin.
Tokens that testify to the strength of the exchange
Both very young, BNB and BUSD are Binance’s native core tokens. These two tokens somehow confirm the supremacy of the exchange, since BUSD is the third major stablecoin market, behind USDT and USDC. For its part, BNB is the third leading cryptocurrency in terms of market cap, just behind the unbeatable Bitcoin and Ethereum, which have been around longer than BNB and BUSD. If we combine cryptocurrencies and stablecoins, BNB is 5th while Binance USD is 7th.
Binance’s stablecoin continues its ascent, having doubled its market capitalization in one year. The trust it enjoys and the mistrust of other stablecoins in the market have only furthered its rise.
Binance is also the only crypto exchange that has its own stablecoin, which also has its own characteristics. Like the BNB token, it is ubiquitous within the Binance ecosystem and linked to the majority of financial products made available by the platform.
Moreover, the recent announcements of auto-conversion of certain stablecoins (USDC in particular) into BUSD could propel the latter to new heights. Indeed, although this conversion facilitates transactions and movements of investors, it is difficult not to also see it as a strategy on the part of the exchange to consolidate the progress of its own stablecoin and see it take a position equivalent to that of USDT and USDC. As BUSD market capitalization continued to rise this past month as auto-conversion began for this September 29movements in favor of Binance USD could take place.
At the beginning of September, the number of addresses with BUSD even signed a new ATHshowing growing interest in the stablecoin.
Among the exchange platforms that have their governance token (ex: FTX and the FTT token), Binance and its BNB are unanimous with a token that capitalizes enormously, but also with the BNB Chain network, very influential on the blockchain .
The price of BNB is also a symbol of success, since since its initial launch, it has risen sharply. With an ATH close to $700, it strongly rewarded investors who bought it at around 10 cents at launch. The comparison made by CZ with the iPhone may make you smile, but it shows the growth in assets over the past 5 years.
Spending and Growth for Binance
As bad news has come and gone since the collapse of Terra Luna last spring, Binance has gone against what the cryptocurrency industry has been able to do. Indeed, various exchanges such as Coinbase and Gemini have had to cut staff in these times of crisis in the crypto market, while Binance has decided to intensify its recruitment campaign with more than 1,000 positions regularly available on its site. Internet.
But still, the company continued its growth by taking a very symbolic decision to remove trading fees Spot on 13 Bitcoin-related pairs. This decision is not only symbolic, since the BTC/USDT and BTC/BUSD pairs represent more than 63% of the Spot market trading volume carried out on Binance. The exchange therefore decides to do without expensive revenue by adopting this strategy to attract new users.
Similarly, more recently, in order to “finish off” its main competitors, Binance opened the Spot market to the general public by removing trading fees (for the moment over one month) on the ETH/BUSD pairwhich is about 7.37% of today’s trading volume.
Finally, for fear of doing things by halves, Binance also decided this week to burn LUNC tokens in its charge rather than implement the off-chain burn tax. Since the exchange’s trading fee is 0.10%, it is this source of income that will be used to burn LUNC tokens. The LUNC representing almost 2% of the daily trading volume, Binance will again do without an interesting source of income.
These strategies seem clear: Binance is therefore probably seeking to confirm its supremacy by attracting new traders. Indeed, the latter could be very interested in the idea of carrying out transactions without costs on the main crypto assets.
Considering the various measures taken by Binance in recent weeks, one would think that the crypto market is in the midst of a bull run. On the contrary, the general situation of the industry has been delicate for several months. But Binance seems to be doing just fine, with decisions and risk-taking signaling a growing business.
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Binance: an unquestionable supremacy for the n°1 crypto exchange in the sector – BeinCrypto International
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