According to the chief researcher at Arcane Research firm, Binance exchange topped the exchanges in 2022 in many ramifications. He bolstered his stand as he explained the report of his study, which revealed impressive achievements and market dominance that Binance executed this year.
Binance Controls 92% Of BTC’s Spot Trading Volume
Since the debacle of the FTX exchange, the former second-largest exchange by trading vol, the crypto market dominance has significantly changed structure. According to the on-chain analytics platform, Arcane research, Binance received most of the customers that migrated from the fallen FTX, further increasing its market dominance in 2022.
On Friday, Vetle stated that Binance largely dominated the crypto market trading activities from all the perspectives anyone might consider. He added that the crypto custodian led this year’s race in the market based on available data.
According to Arcane’s report, Binance controlled about 92% of the BTC spot trading volume. Interestingly, in January, Binance merely accounted for 42% of the same volume.
However, the volume sporadically rose after the exchange reduced its spot trading transaction fee. In addition, the number further grew massively after the unexpected fall of FTX in November.
Vetle explained that the enormous dominance of BTC spot trading exhibited by Binance could only be matched by Mt. Gox’s record when the former was dominant years ago.
Binance’s Dominance In Multiple Market Sectors
However, Binance did not just dominate the spot volume; its dominance spread across the market. Binance exchange accounted for about 66% of perpetual swap volume worldwide, according to Arcane’s report.
In addition, the report showed that OKX and Bybit followed suit with 16% and 13%, respectively. Furthermore, Binance occupied about 55% of the perpetual volume until November, when FTX collapsed.
Afterward, its dominance grew significantly by 11%, according to Vetle. Additionally, Binance has a 49% dominance in the perpetual open market, leading Bybit and OKX, who have about 23% and 20%, respectively.
Significantly, Binance commands the BTC perpetual and futures trading volume, accounting for about 66% of the market. Binance has grown steadily to become the largest exchange in the perp and futures market.
However, it is worth noting that Binance gained most or all of the market shares after the FTX exchange suddenly collapsed. Apart from the various markets where Binance dominated, the exchange also achieved some remarkable feats in 2022.
Vetle Lunde stated that BNB’s (Binance’s native token) market dominance rose from 11% to 14% to oust ETH and BTC in 2022. In addition, due to the adverse market condition, many firms laid off their workers, except for Binance. Instead, Binance grew its workforce base by half its original size, showing a significant increase in headcount.
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