As the market heats up, Binance’s dominance and influence are increasingly evident. Recent reports indicate a notable increase in stablecoins flowing into the crypto exchange, leading to enhanced liquidity.
Based on a recent analysis by CryptoQuant, Binance currently commands approximately 67% of the total reserves of stablecoins across all exchanges, establishing itself as the most liquid platform. Consequently, it wields significant influence over the flow of capital into cryptocurrencies.
In 2024 so far, Binance has recorded a substantial influx of over $22 billion in stablecoins, solidifying its position as a key driver of demand in the crypto space this year. This heightened liquidity has enabled Binance to bolster transaction activity, which is expected to translate into increased revenue.
Review of Binance Smart Chain Network Activity
DeFiLlama data reveals a notable growth in the stablecoin market cap on the Binance Smart Chain (BSC) in 2024. The lowest point for the stablecoin market cap was recorded at $32.71 million on January 21, attributed to a brief downturn that swiftly recovered to surpass $4 billion.
Over the last three months, the stablecoin market cap on BSC has demonstrated significant growth, climbing from approximately $5.01 billion at the beginning of November to $6.60 billion by December 13. It is essential to note that this increase primarily reflects the liquidity within the network rather than on the exchange itself.
Volume on BSC has exhibited notable improvements in Q4, with a peak of $2.43 billion in the past 24 hours, marking the second instance this month where it has exceeded the $2 billion threshold.
Despite the recent surge, the volume remains below the historical peak levels witnessed during the 2021 bull market. Furthermore, the transaction count has risen from around 3 million daily transactions in September to over 5 million transactions.
Price Movement Recap of BNB
Amid the bullish market activity in 2024, BNB has evidently reaped significant benefits, evident from its bullish stance. At the onset of this week, BNB experienced a bearish trend, resulting in a sharp decline from its recent all-time high.
The subsequent pullback drove the price down to $642; however, it led to a retracement within a key Fibonacci level, propelling the price back above $700. At the time of writing, BNB was valued at $723.91.
Although the retracement thwarted hopes of breaching the $800 mark, the altcoin’s recent recovery in the latter half of the month suggests potential for a rally above this target before month-end.