And the palme d’or for the best exchange of the year goes to… Binance!

Binance, an unchallenged reign

In this year 2022, Binance has confirmed or even reinforced its supremacy over the competition. At different times of the year, Binance or its CEO Changpeng Zhao hit hard, with an offensive strategy aimed at luring more investors to its crypto platform.

Prior to the fall of FTX, the CZ exchange had many high points that showcased the platform’s power, resources, and ability to manage during the crisis in the crypto markets.

From a utility perspective, Binance was already one of the lowest-fee crypto platforms in the industry. Demonstrating great sustainability, the crypto exchange then gradually decided to open zero-fee trading pairs linked to digital assets responsible for high transaction volumes.

Indeed, in July first and then in August, Binance announced the free 13 trading pairs related to Bitcoin on the Spot market then that of the pair ETH/BUSD, one of the main trading pairs for the Ethereum asset. Through this initiative, Binance has hit hard by depriving itself of very significant income even as the crypto industry is ravaged by the crisis and the mismanagement of certain players.

Throughout the year, the exchange has thus gone against the grain of its rivals, favoring its expansion within the crypto ecosystem. Instead of a staff cut, Binance has notably advocated a completely opposite strategy of development and international growth. At present, some hundreds of positions are still to be filled while the teams already have more than 6,000 workers in its ranks.

Unparalleled trading volume

Binance’s stranglehold on the crypto market is such that it will be difficult to dislodge this industry giant in the future. Year after year, the position of the exchange has strengthened, and the gap with its main competitors has widened. Dominant over the social networksBinance is even more so when you take into account the numbers that really matter.

Indeed, on the Spot market, the gap with its competitors has increased, and day after day, Binance’s performance is more than 5 times better than that of other crypto exchanges.

On the derivatives market, even dynamic for Binance, which is far ahead – even too far – of the competition.

Moreover, the fall of FTX could very well have reinforced the position of supremacy of the exchange since the platform of Sam Bankman-Fried seemed to be one of the only serious competitors for CZ and Binance.

Indeed, FTX was also expanding, and with its huge sponsorship deals in the United States, seemed to be one of the platforms in good health economically speaking, able to come and tickle Binance for leadership.

However, with this chart reported by The Block, it can be observed that Binance has steadily increased its influence, being responsible in December 2022 for more than 85% of the trading volume on the Spot market when the platform is compared to some of its competitors (OKX , Kucoin, Crypto.com…). This value has also increased in recent years and months, since in January 2022, Binance was responsible for “only” 50% of the volume, against these same exchanges. This chart clearly demonstrates that from one year to the next, Binance has taken several steps at a time unlike other crypto exchanges.

Continuous expansion

During this year 2022, Binance has made regulation one of its priorities, and has sought to settle in various key locations around the globe. France has not gone unnoticed, and CZ seems to have made it a major objective. With this in mind, the exchange has submitted itself to various conditions set by the AMF in order to be issue the PSAN license allowing it to operate in France. But still, this expansion strategy was also characterized by obtaining licenses to operate in other countries of the world, so as to extend its international influence.

The influence within the cryptocurrency industry is such that Binance has, for a moment, considered a purchase of FTX, its biggest rival platform. Takeover which was not completed due to the poor economic health of the Sam Bankman-Fried platform. That said, just thinking about this possibility attests to the power of Binance.

In addition, this major player in the industry has, since the start of the crypto market crisis, been at the heart of the action by constantly commenting on industry news through CEO and spokesperson Changpeng Zhao.

But above all, the CEO has worked directly or indirectly to bring more transparency to the sector, by proposing on various occasions to the exchanges to demonstrate the existence of their reserves. Binance was therefore one of the first exchanges to lead the way, by sharing its Proof of Reserve. December 7, an audit carried out by a specialized company even confirmed the real existence of Binance’s reserves on certain assets. Thus, Bitcoin is 101% collateralized on the exchange.

Finally, for more transparency, a multitude of wallets belonging to Binance have been shared to provide more visibility on the details of the reserves of the exchange. This information is listed in particular on CoinMarketCap both for Binance and other exchanges.

Finally, the predisposition to help others is no longer to be demonstrated since Binance has evaluated the takeovers of a multitude of companies linked to the world of cryptocurrencies, proceeded to the purchase of some or even decided to create a fund to help companies in difficulty when FTX had just gone under.

Binance 2022 Highlights Summary

• Changpeng Zhao, CEO of Binance closer to the greatest fortunes of the world, with an estimated wealth of 96 billion dollars (January 2022).
• While some cryptocurrency platforms multiply expensive sponsorships, Binance opts for invest in Forbes magazine up to $200 million (February 2022).
• Trading volume up on Binance at different times of the year with record sums (April 2022).
• Binance supports Ukrainian refugees, their providing assistance of 75 BUSD for 3 months (April 2022).
• The Chinese exchange sees itself issue the PSAN license by the French authorities. A big blow allowing the platform to enter France. A new building block with a view to international expansion (May 2022).
• Shortly after the start of summer, a collaboration between Binance and football star Cristiano Ronaldo becomes official. The Portuguese, the most followed person in the world on Instagram, will thus have his own collection of NFTs on the exchange (June 2022).
• Very offensive during the summer, Binance announces the free 13 trading pairs on the Spot market linked to BTC. Very important pairs such as BTC/BUSD or BTC/USDT thus see their transactions free of fees (July 2022).
• In the “stride”, the ETH/BUSD pair is also seen exempt from fees trading on the spot market. Actions that only Binance has been able to undertake (August 2022).
• Subsequently, Binance also decides to participate at its own expense in the burning of LUNC tokens. Several million dollars are spent by the platform to burn these tokens. Binance therefore decides to do without new sources of income while the rest of the industry is in distress with the lack of cash.
• Binance USD, or BUSD, exceeds 20 billion market capitalization, gradually closing the gap with USDC or USDT. The stablecoin also strengthens its third position for currencies of this type (October 2022).
• Following disturbing reports of cash of FTX and Alameda Research, CZ makes public the decision made by Binance to gradually sell its FTT tokens. Fear has gripped the crypto industry, and this simple tweet announcement marks the the begining of the end for the Sam Bankman-Fried exchange (November 2022).
• While for a time the takeover of FTX by Binance is mentioned and anticipated, this operation does not ultimately take place, due to the disastrous internal situation for FTX. This buying rumour, launched by SBM and CZ in person, however, shows Binance’s display of power and its hold on the crypto market (November 2022).
• Binance continues to expand with the fall of FTX and leave far behind all of its competitors (November 2022).
• Binance becomes the centralized crypto exchange holding the most bitcoin in the world (November 2022).
• Mazars Veritas announces on December 7, 2022 that it has certified the reserves of Bitcoin from Binance. The collateralization of the asset is 101% in Bitcoin. An announcement that will reassure more than one as rumors are rife within the crypto industry (December 2022).

For 2023, Binance will undoubtedly aim to continue to build the Web 3 industry and the decentralized world that some have dreamed of, and will certainly play a major role in the generalization of cryptocurrency adoption.

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