Key points to remember:
- Binance’s share of the Bitcoin spot market has grown from 45% to 92% in 2022, according to a January 3 report from Arcane
- Arcane highlighted Binance as the big winner of 2022 and wrote that “Binance is the crypto market”
- Next to Binance, OKX is another crypto exchange that had a good share of success in the market in 2022
Binance expands dominance as crypto trading volume drops
Crypto analysis firm Arcane Research has released a new report on the state of digital asset markets on Tuesday. One of the most interesting points presented in the report is the fact that Binance has further strengthened its position as the leading crypto exchange, and by a very considerable margin.
Binance’s share of Bitcoin spot market trading volume surpassed 90% on December 28, more than double what it was at the start of 2022 (from 45% to 92%).
At the same time, Binance saw strong performance across its entire exchange offering. The dominance of BTC futures fell from 47% to 61%, while the volume of crypto perpetuals fell from 56% to 66%. Other metrics, such as stablecoin dominance and open interest share, also improved, albeit by a smaller relative margin.
Building on these results, Arcane crowned Binance as “the winner of the year” and added that the growth coincided with Binance removing trading fees for Bitcoin spot trading pairs. “However you see it in terms of trading activity, Binance is the crypto market,” Arcane summed up.
OKX pulls off an impressive recovery
In addition to Binance, OKX was one of the companies that had its fair share of success in 2022. After a very problematic 2021, which saw a sharp decline in OKX’s market share after crypto bans in China, the business experienced a resurgence last year. OKX has established itself as one of the leading derivatives platforms, increasing its market share from 8% to 25% during the year.
The market performance of the exchange’s native OKB token closely mirrored OKX’s rally. The price of OKB has increased by 175% in the last 6 months, which has elevated the token among the top 10 currencies by market capitalization. The price prediction for OKB is particularly bullish in the near term, as our prediction algorithm predicts another 30% increase next month.
Despite some brewing optimism, Arcane believes the high interest rate environment in 2023 will persist and limit the upside potential for digital assets over the next year. Overall, Arcane presented a reserved outlook for 2023:
“It will be a year to accumulate and develop exposure. It will be a year for the patient, and we don’t expect prices to approach any old all-time highs in 2023. We believe BTC and ETH will increase their relative strength in the market and altcoin returns will be subdued for most of the year. ”
David is a crypto enthusiast and personal finance expert. He has created numerous publications for different platforms. He loves exploring new things, and that’s how he discovered blockchain in the first place.