VOT Research Desk
Because of its daily trading volume, Binance is recognized as the largest cryptocurrency exchange, but during the past few weeks, it has also established itself as one of the key players in the cryptocurrency market.
Binance has benefited after selling all of its FTT assets and FTX’s eventual demise. The daily traded volume was significantly higher on Binance in December than it was in November. Some of the biggest exchanges, like as Binance, Coinbase, and Kraken, benefited from the fall of FTX due to the increase in user engagement.
According to Kaiko, a source of cryptocurrency analytics, the monthly traded volume increased by 23% to $705 billion.
However, Binance, whose trading activity saw a 30% increase in the previous month, was the main driver of this increase. Given that Binance is currently in a strong position, this is anticipated to grow over time.
In the newsletter, it was explained that despite not having an official headquarters, Binance would profit because it had the strongest liquidity of any centralised exchange throughout the crisis and thus created an image of power.
The steps that Binance has done over the past several weeks provide clear evidence of this. In order to assist the projects affected by the liquidity issue brought on by FTX’s demise, Binance established the Industry Recovery Initiative (IRI) fund.
The cryptocurrency exchange committed more than $1 billion on its own at launch and inspired other market participants to follow suit.
The transparency trend was also started by Binance, who suggested that customer Proof of Reserves be published.
The exchange demonstrated that it meant what it said when it posted its Bitcoin reserves at a 101% ratio, covering $9.48 billion in customer funds with reserves worth over $9.59 billion.
