Binance Tops List of Crypto Exchanges in Market Share 12r2o Arcane Research

With 61 percent in hand, Biance's market dominance also spread to the Bitcoin derivatives market in of volume last year. 5p4x6g

Written by Siddharth Suvarna | Updated: 4 January 2023 16:17 IST

Binance Tops List of Crypto Exchanges in Market Share: Arcane Research

Photo Credit: Facebook/ Binance 2s6t5z

Binance, under its CEO Changpeng Zhao, aime to be the world’s most licenced crypto exchange

Highlights

Arcane released its report on January 3, 2023
Binance sured rivals Coinbase, CoinMarketCap in market share
Arcane credited OKX crypto exchange for making solid market comeback

ment

Binance grabbed the largest chunk of the global crypto market in the year 2022. In its analysis, digital assets research firm Arcane said that by the last week of December, Binance had 92 percent of Bitcoin's spot market — the base market where crypto assets are settled and exchanged instantaneously. The company, that had also suffered the impacts of the crypto market slump, had resorted to laying off a substantial part of its work force to keep the business afloat amid the turmoil.

With 61 percent in hand, Binance's market dominance also spread to the Bitcoin derivatives market in of volume last year. In derivatives trading, buyers and sellers enter into smart contracts to trade an underlaying assets.

Overall, traders who were processing crypto trade in real time, as well as people who were betting on smart contracts — majority from both the areas — chose to use Binance as their preferred platform.

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

The exchange, that aims to become the most licenced crypto player in the world, signed some major acquisition deals last year. These include Binance purchasing Indonesia's Sakura exchange.

Towards the last leg of December, Binance did find itself under the spotlight, after it recorded a large number of withdrawals following the collapse of the FTX crypto exchange, that succumbed to a liquidity crunch.

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At the time, its CEO ‘normal market behaviour' while attempting to pacify crypto invetsors.

The exchange claimed to have conducted audits of its proof-of-reserves, soon after which, Mazar's, the auditing firm working for Binance, suspiciously halted its work with the exchange.

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

“Since January 2020, China's crypto bans, leading the exchange's market dominance to plunge,” the report highlighted.

Between 2021 and 2022, the overall crypto sector lost over $2 trillion (roughly Rs. 1,65,74,700 crore). The FTX slashed investor engagement in the sector.

Under market stress, companies like Voyager Digital filed for bankruptcy.

Will crypto tax hurt the industry in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

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Further reading: Crypto Exchange

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at [email protected]. More