- Binance has seen a significant drop in trade volume in 2023.
- The data can be worrying, given recent regulatory troubles.
- In this article, we put this data into perspective.
As Binance, the world’s largest crypto exchange, battles global regulatory scrutiny, fears over the exchange’s business are at a fever pitch. Hence it can be easy to panic when you learn that the exchange has had the largest drop in trade volume in 2023, behind only a bankrupt crypto exchange.
Binance Trade Volume Takes a Big Hit
Binance has seen an $870 billion drop in trade volume in 2023, the largest drop behind only Bittrex, which is currently under Chapter 11 bankruptcy protection, according to data shared by Kaiko Research Analyst Dessislava Ianeva on Tuesday, August 1.
So, should you worry in light of the recent data? Let’s put things into perspective.
A Matter of Size
Given Binance’s size, such figures should not be surprising. In the spot market alone, the crypto exchange boasts over $9 billion in 24-hour trading volume, almost nine times the volume seen by rivals like Coinbase and OKX, per data from CoinMarketCap.
As later revealed by Kaiko’s Ianeva, the $870 billion drop in Binance’s trade volume represented only a 26% decline from year-to-date. By comparison, the percentage declines on competing exchanges like OKX, Coinbase, and Kraken are in the high double digits at 63%, 54%, and 59%, respectively.
The recent data comes as the crypto market struggles to recover from an extended downturn that has seen volumes drop across the board.
On the Flipside
- Compared in percentages to competitors, Binance’s trade volume decline is impressive, considering recent regulatory troubles.
- Binance has recently expanded to Japan and Dubai.
Why This Matters
In light of recent regulatory troubles, data highlighting a significant drop in Binance’s trade volume can easily cause panic. However, when placed in context, the data suggests that the decline is not out of place.
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