Binance tops list of crypto exchanges in market share: Arcane Research

Binance captured most of the global crypto market in 2022. In its analysis, digital asset research firm Arcane said that as of the last week of December, Binance had 92 percent of Bitcoin’s spot market — the base market where crypto assets are settled and exchanged instantly. The company, which had also suffered the effects of the crypto market collapse, had laid off a significant portion of its workforce to keep the business afloat amid the turmoil.

With 61 percent in hand, binance Market dominance also spread to the Bitcoin derivatives market in volume terms over the past year. When trading derivatives, buyers and sellers enter into smart contracts to trade underlying assets.

Overall, real-time crypto traders as well as people who rely on smart contracts — the majority from both fields — chose Binance as their platform of choice.

‘Binance is the crypto market. There are no other obvious “winners” of 2022 when it comes to crypto market structure and market dominance other than Binance,” Arcane said said in his report.

The exchange, which aims to become the world’s most licensed crypto player, signed some major acquisition deals over the past year. This includes Binance’s purchase of Indonesia Tokocrypto exchange and Japan’s Sakura exchange.

Towards the end of December, Binance took the spotlight after seeing a large number of withdrawals following the collapse of crypto exchange FTX, which fell victim to a liquidity crisis.

At that time his CEO Changpeng Zhao had called that “normal market behavior” while trying to reassure crypto investors.

The exchange claimed to have conducted audits of its reserve statements, prompting Mazar’s, the accounting firm that works for Binance, to become suspicious stopped his work with the exchange.

In a special shout out, Arcane has credited Seychelles-based crypto exchange OKX for posting one of the best market rallies in the crypto sector amid the ongoing crypto winter.

“Since January 2020 OKX has seen its market dominance fall from 30 percent to 8 percent and has recovered to 25 percent in a truly remarkable recovery. OKX’s recovery is the most overlooked and notable structural change in BTC derivatives in 2022. 2021 was a devastating year for OKX due to China’s crypto bansresulting in the market dominance of the exchange collapsing,” the report pointed out.

Between 2021 and 2022, the entire crypto sector lost over US$2 trillion (approximately Rs.1.65.74.7 billion). That Russia-Ukraine Warthe recession that followed COVID-19 pandemic, repeated hack attacksand the collapse of promising crypto projects like LUNA and FTX Limited investor exposure to this sector.

Under market stress, companies like CryptoCom and binance among a number of others attacked companies like BlockFi, Celsiusand Voyager Digital filed for bankruptcy.