Binance Commands 55% of Spot Trading Following FTX Collapse

Following the collapse of the FTX cryptocurrency exchange, its rival Binance has gained more dominance in global crypto spot trading. Specifically, the leading digital asset service provider controlled as much as 55% of the world’s crypto spot trading in January. 

According to data from CryptoCompare, this indicates a 7% increase after the liquidity crunch faced by the Bahamian-headquartered crypto trading platform.

The bankruptcy filing and the resignation of Sam Bankman-Fried, the former Chief Executive Officer (CEO) of FTX allegedly led to an increase in market share for Binance. Although it is also noteworthy that this additional growth was noticed at a time when crypto assets were recovering in terms of their market price. Several major coins doubled their digit gain.

Additionally, the global market capitalization which was sitting below $1 trillion after about $2.2 trillion was wiped out due to the numerous crash and bearish moves in 2022, is on a recovery trend and has now reached $1.08 trillion. 

Binance Scaled Through 2022 Bear Market

There existed several suspicions that Binance could suffer a similar fate as FTX owing to their status as close rivals. The former released its proof-of-reserve to boost users’ confidence and promote transparency.

However, the PoR raised more concerns in the minds of many as it revealed certain flaws that Binance has been covering. One of the red flags in Binance’s PoR as stated by John Reed Stark, a former chief of the Securities Exchange Commission’s Office of Internet Enforcement, is that it did not quantify the platform’s assets and liabilities. Binance later tapped the blockchain analytic platform CryptoQuant to confirm the result of its PoR.

In the end, the renowned crypto exchange withstood the bearishness and scaled through 2022.

CoinMarketCap data indicated that Binance has grown to become the world’s biggest digital asset service provider citing its 24-hour trading volume and weekly visits. While Binance’s global reach is increasing, other crypto platforms like Coinbase, Crypto.com, and Kraken are tending towards a flat line.

Binance has already started the New Year on a great note as it is looking at increasing its workforce by 30%. As it concerns regulation and compliance, the crypto trading platform has received approval and registration from the Swedish Financial Supervisory Authority.