'Binance is the crypto market': Arcane crowns the exchange 2022's winner
During a year plagued by crises such as the collapse of FTX and Celsius, data shows that crypto exchange Binance has emerged as the clear “winner” of 2022 according to Arcane Research.
A Jan. 3 report from Arcane highlighted that Binance saw its market dominance soar throughout 2022. As of Dec. 28 last year it had captured 92% of the Bitcoin (BTC) spot market and 61% of the BTC derivatives market by volume:
Binance’s BTC spot market dominance was 45% at the start of 2022 meaning that it more than doubled, while its share of the BTC derivatives market increased by almost one third.
The “spot trading volume” is an indicator that measures the total amount of Bitcoin being transacted on spot exchanges on any given day.
The report suggests the increase in Binance’s BTC spot market dominance predated the fallout of the second largest exchange by volume FTX, and began to surge after it removed fees for certain trading pairs on Jul. 7, 2022.
The exchange also made some notable acquisitions to boost its global coverage in 2022 such as the Japanese trading platform Sakura Exchange BitCoin and Indonesian digital currency brokerage firm Tokocrypto.
Binance has been one of the few exchanges to increase the number of staff it employs over the year while its peers such as Kraken and Coinbase have been forced to lay off staff during the current crypto winter.
Related: Tribulations and triumphs: The biggest surprises in crypto of 2022
Looking ahead to 2023, Arcane predicted in a Dec. 30 report that Binance would implement trading fees again in 2023 which would lead to a “normalization of the market dominance.”
As noted in a Jan. 3 report from digital asset data firm CryptoCompare, removing fees allows exchanges to attract customers but they
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