On December 30th, Senior Analyst at Arcane Research Vetle Lunde posted a thread highlighting the largest crypto exchange’s substantial list of accomplishments in 2022. According to him, “Binance dominates the crypto market.”
He asserts that “Binance is the clear winner of 2022,” with 92% of the spot volume, 66% of the worldwide perp volume, 49% of the global perp OI, and 61% of the BTC perp/futures volume, along with 30% of the BTC perp/futures OI.
The analyst revealed that the exchange had surpassed the BTC spot volume (92%) since raising trading costs for its BTC spot pairings this summer.
Additionally, it had 55% of the market share for perp trading until November, dramatically increasing to 66% due to the collapse of Sam Bankman-Fried’s crypto exchange, FTX, which resulted in a near-total market share loss for perp trading.
According to the analyst, nearly half of the total open interest across crypto platforms is represented by the largest crypto exchange. After the FTX crash, its dominance earned the most market share.
In terms of BTC, Binance’s dominance is almost as strong as it is overall. The exchange’s market share has only increased throughout the year, and in November, roughly all of FTX’s market share moved to Binance.
Additionally, the exchange has consistently led the market, holding a 25–35% market share of the OI in BTC derivatives. The Twitter thread also highlights other victories for Binance this year, such as gaining market share in the stablecoin market. Additionally, BNB performs far better than ETH and BTC.
Moreover, it has been a glaring anomaly in terms of employment, increasing its staff base in a year when several rivals had either cut their workforce in half or declared bankruptcy.
Binance 2022 “Regulatory Milestones”
Additionally, Binance published a blog post in which the exchange described its “regulatory milestones” for 2022. The exchange stepped up its user protection and regulatory compliance activities during this year.
Moreover, As of the end of 2022, the exchange had obtained registrations and licenses in 14 jurisdictions through collaborating with regulators all around the world.
They boosted security and compliance staff by over 500%. They became the first crypto exchange to join the National Cyber-Forensics and Training Alliance (NCFTA) to demonstrate further their commitment to combating bad actors in the field.
Furthermore, according to the blog post:
We launched a proof-of-reserves (PoR) system to enable anyone to verify that user funds custodied on Binance are held 1:1, plus extra reserves.
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