Binance, the world’s largest cryptocurrency exchange, saw its market share of bitcoin trading volume reach 92% by the end of 2022, according to Arcane Research.
The elimination of trading fees on the Binance platform in June and the collapse of rival exchange FTX in November both contributed to the platform’s growth in market share. These events attracted more users to Binance.
This marked an increase from 45% at the start of the year. The exchange’s rise to dominance was driven in part by the elimination of trading fees in June and the collapse of rival exchange FTX in November, which prompted more users to flock to Binance.
The platform’s overall market share for the year was 66.7%, while Coinbase came in second with 8.2%.
However, Binance’s monopoly-like dominance has raised concerns, particularly in light of its ongoing investigation by the U.S. Justice Department over compliance with anti-money laundering laws and sanctions, as well as the recent loss of its auditor, Mazars Group.
Some experts have warned that the retail crypto industry could enter a “dark age” if Binance were to encounter any issues.
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