Binance’s market share of Bitcoin trading volume rose to 92% by the end of 2022

Binance continues to cement its strong position as the world’s largest cryptocurrency exchange, with its share of Bitcoin spot trading growing at a dizzying pace by the end of 2022.

Binance accounts for 92% of Bitcoin spot trading market share by the end of 2022

According to Arcane Research, Binance’s Bitcoin spot trading market share was only 45% at the beginning of last year. Still, the removal of trading fees for 13 BTC pairs marks the exchange’s 5th birthday in July 2022 and has prompted users to start flocking to the platform for BTC trading at optimal costs.

On the other hand, the collapse of the biggest direct competitor FTX as a very strong catalyst, helped Binance bring in more trading volume for the exchange, skyrocketing more than 30% after the event. Combining the two factors, Binance’s Bitcoin spot trading market share easily reached 92% by the end of 2022.

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Binance’s trading market share in spot and derivatives by the end of 2022. Source: Arcane Research

While Binance has been the largest cryptocurrency exchange by trading volume over the past few years, market share data shows astonishing expansion and monopoly. What a surprise that Binance owns compared to many other exchanges. Statistics from CryptoCompare clearly show that Binance’s overall crypto market share at the end of 2022 is 66.7%, while Coinbase comes in second with only 8.2%.

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Monthly market share change of top exchanges in 2022. Source: CryptoCompare

Of course, the fact that Binance has achieved such great success in market share will bring a good signal to the market as a leading flag for the entire industry to continue to recover after a long series of crises in the past few years. However, the risk is still there if Binance encounters any problems in the future.

The market had a heart-stopping phase in mid-December 2022 when there were rumors about Binance’s illiquidity, accusations of money laundering by US authorities, and trouble with cryptocurrency exchanges auditing companies, causing the exchange to be under pressure to withdraw massively quickly. However, things quickly returned to the right trajectory soon after.

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