<

Binance Leads Crypto Exchange Volume in January Despite Regulatory Hurdles

The cryptocurrency market has seen a surge in trading activity in January 2024, reaching a 12-month high of over $800 billion, according to a report by blockchain analytics firm CryptoRank. The report also revealed that Binance, the world’s largest crypto exchange by volume, accounted for nearly half of the total spot volume, despite facing regulatory challenges in several countries.

Crypto Trading Volume Hits New Highs

CryptoRank’s report, published on February 4, 2024, showed that the spot volume on leading centralized exchanges increased by 10.4% compared to December 2023, reaching a new 12-month high of $803.7 billion. The report attributed the growth to the increased interest and demand for cryptocurrencies, especially Bitcoin, which hit a new all-time high of over $60,000 in January.

The report also highlighted the performance of different exchanges, ranking them by their monthly spot volume change. Binance topped the list with a 9.8% increase, followed by Coinbase with 18.6%, and Kraken with 12.1%. The biggest gainer was Upbit, which saw a 44.6% jump in its spot volume, while the biggest loser was Gate.io, which suffered a 34% drop.

Source: CryptoRank

Binance Dominates the Market Despite Regulatory Pressure

The most remarkable finding of the report was the dominance of Binance, which accounted for $400.4 billion of the total spot volume, or 52% of the market share. This means that Binance handled more volume than the next nine exchanges combined. Binance also had the highest number of active users, with over 20 million monthly visits, and the highest number of trading pairs, with over 1,000 listed coins.

Binance’s impressive performance comes amid the increasing regulatory scrutiny that the exchange has faced in several jurisdictions, including the U.S., the U.K., Japan, Germany, and Singapore. Binance has been accused of operating without proper licenses, facilitating money laundering, and offering unregistered securities, among other allegations. Binance has denied any wrongdoing and has stated that it is committed to complying with local laws and regulations.

Binance’s CEO, Changpeng Zhao, also known as CZ, has expressed his optimism about the future of the crypto industry and his exchange, despite the regulatory hurdles. In a recent interview with Bloomberg, CZ said that he expects the crypto market to grow by 10 times in the next five years, and that Binance will continue to innovate and offer new products and services to its users.

Bitcoin ETFs Boost Crypto Adoption

Another factor that has contributed to the growth of the crypto market and the trading volume is the emergence of Bitcoin exchange-traded funds (ETFs), which are investment products that track the price of Bitcoin and allow investors to gain exposure to the cryptocurrency without having to buy or store it directly. Bitcoin ETFs have been approved and launched in several countries, such as Canada, Brazil, and Dubai, and have attracted significant inflows from institutional and retail investors.

The U.S., however, has yet to approve a Bitcoin ETF, despite the growing demand and the numerous applications submitted by various firms. The Securities and Exchange Commission (SEC) has cited concerns over market manipulation, volatility, and custody as reasons for delaying or rejecting the proposals. However, many experts and analysts believe that the SEC will eventually greenlight a Bitcoin ETF, which could boost the adoption and price of Bitcoin and the crypto market as a whole.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

Follow us on Reddit

You might also like

LATEST NEWS

LASTEST NEWS