Binance leads in trading volume in January despite legal troubles
According to a report by blockchain analytics firm CryptoRank, the cryptocurrency market saw an increase in trading activity in January 2024, reaching a 12-month high of more than $800 billion. The report also revealed that Binance, the world's largest cryptocurrency exchange by volume, accounts for nearly half of total spot volume, despite facing regulatory challenges in several countries.
Cryptocurrency trading volume hits new high
CryptoRank's report, published on February 4, 2024, shows that spot volume on top centralized exchanges increased 10.4% compared to December 2023, reaching a new 12-year high. month is 803.7 billion USD. The report attributes this growth to growing interest and demand for cryptocurrencies, especially Bitcoin.
The report also highlights the performance of different exchanges, ranking them according to monthly spot volume changes. Binance topped the list with a 9.8% gain, followed by Coinbase with 18.6% and Kraken with 12.1%. The biggest gainer was Upbit, which saw spot volume increase 44.6%, while the biggest loser was Gate.io, down 34%.
Source: CryptoRank
Binance dominates the market despite regulatory pressure
The report's most notable finding is Binance's dominance, accounting for $400.4 billion in total spot volume, or 52% market share. This means that Binance handles more volume than the next nine exchanges combined. Binance also has the highest number of active users, with over 20 million monthly visits, and the highest number of trading pairs, with over 1,000 coins listed.
Binance's impressive performance comes as the exchange faces increasing regulatory scrutiny in several jurisdictions, including the United States, United Kingdom, Japan, Germany and Singapore. Binance has been accused of operating without proper licenses, facilitating money laundering, and offering unregistered securities, among other charges. Binance has denied any wrongdoing and stated that it is committed to complying with local laws and regulations.
Binance CEO Changpeng Zhao, also known as CZ, has expressed optimism about the future of the cryptocurrency industry and his exchange, despite regulatory hurdles. In a recent interview with Bloomberg, CZ said that he expects the cryptocurrency market to grow tenfold in the next five years and that Binance will continue to innovate and provide new products and services to user.
Bitcoin ETF promotes cryptocurrency adoption
Another factor contributing to the growth of cryptocurrency markets and trading volumes is the emergence of Bitcoin exchange-traded funds (ETFs), which are investment products that track Bitcoin prices and allow investors gain exposure to cryptocurrencies without having to buy or store them 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.
