3 months ago 1 min read

With 92% of Market Share, Binance is currently the "hegemonic" Player in Spot Trading


Investors are increasingly turning to Binance as a result of the abolition of bitcoin transaction fees and the failure of the FTX exchange. By the end of 2022, the platform will control the majority of Bitcoin spot trading volume.

Binance will hold a 92% market share of the total bitcoin trading volume by the end of 2022. At the beginning of last year, the platform's market share was only around 45%, but since the exchange vowed to eliminate bitcoin transaction fees in June 2022 and the fall of FTX in November, users have flocked to Binance.

Despite recent negative headlines, Arcane Research claims that Binance is still the top cryptocurrency exchange at the moment. The spot market's entire market share has been totally swallowed by the platform. By trading volume, this cryptocurrency exchange continues to hold the top spot and has done so for a while. The aforementioned information illustrates Binance's "hegemony."

The firm's overall crypto market share at year's conclusion is 66.7%. When compared to Binance, Coinbase (COIN), which comes in second with 8.2%, has a very low percentage.

According to Edward Moya, senior analyst at Oanda, "in the near future, the trading volume of exchanges is anticipated to fall significantly." "This is probably the largest exchange right now in terms of volume...but it wouldn't be healthy to have too much volume focused on any one exchange," Moya said. "The market will require a relatively extended period of time to recover."

Many people were worried that the exchange will imitate FTX in some way. One investor said, "Binance has an excessive market share; everyone's money is centered here, which would be a major concern if the firm has any problems." Another person commented, "The platform being the last stop, I can't image it falling."

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