In 2024, Binance’s total spot trading volume surged to $7.23 trillion, representing 46.59% of the overall market share.
As the cryptocurrency market continued to expand steadily in 2024, Binance emerged as the most influential digital asset exchange platform.
During this period, Binance’s overwhelming presence in the market underscored the sustained trust and confidence in the platform among market participants.
An analysis conducted by CryptoQuant on the cumulative spot trading volumes of various exchanges in 2024 emphasizes the pivotal role that exchanges have played in fostering the growth and evolution of the market.
Binance’s Dominance in the Market
According to the findings of the CryptoQuant report, Binance has solidified its position as the leading exchange platform.
During the year 2024, Binance reported a cumulative spot trading volume of $7.23 trillion, capturing a substantial 46.59% of the total market share.
In comparison to other prominent exchanges like Bybit, Crypto.com, OKEx, and Coinbase, Binance commanded a market share of 34.65%, indicating an impressive 11.94% lead over its closest competitors.
As Binance’s market share continues to rise, it signifies that a considerable portion of Bitcoin’s liquidity and price actions are concentrated on the platform.
Consequently, the performance of Binance is closely linked to the movements, stability, and trends observed in the price of Bitcoin, owing to the platform’s significant trading volume.
Implications for Bitcoin
Given Binance’s dominant position in the cryptocurrency exchange landscape, the sentiment of investors towards the platform mirrors the broader market sentiment.
According to an analysis by CryptoCrypto, the market share of the exchange has witnessed a steady climb, with investors predominantly displaying a positive outlook towards Bitcoin.
Throughout 2024, investors holding BTC on Binance have exhibited optimism, propelling prices to historic highs.
This positive sentiment is further substantiated by a favorable funding rate on Binance. In 10 out of the 12 months in 2024, a positive funding rate was recorded, with October and September being the exceptions.
A predominantly positive funding rate indicates that investors are bullish and willing to pay a premium for long positions, signaling confidence in future price movements.
Furthermore, the historical Bitcoin balances on Binance witnessed a notable decline in November 2024, implying that investors are amassing BTC by transferring more assets from the exchange to personal wallets.
Traditionally, fluctuations in the exchange’s Bitcoin balances have wielded an impact on prices. For instance, a yearly low in balances preceded Bitcoin’s surge to an all-time high of $108k in November 2024.
A similar trend was observed in March 2024, wherein Bitcoin crossed the $70k mark for the first time. Conversely, an uptick in Binance balances resulted in a price dip, such as the scenario witnessed in August 2024 when prices retraced to $49k.
To conclude, the escalating dominance of Binance in the market has left a profound imprint on the cryptocurrency sphere. With the platform’s remarkable expansion and the optimistic outlook of BTC investors on Binance, Bitcoin has surged to new all-time highs.
Under favorable circumstances, Bitcoin stands poised for further advances. Hence, there exists a possibility for Bitcoin to reclaim the $96,700 threshold if traders sustain their bullish stance on the exchange.