Entering 2024, What Is Binance's Status After the "70 Days Post-Crisis"?
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Entering 2024, What Is Binance's Status After the "70 Days Post-Crisis"?
Market share not only didn't decline but actually increased, Launchpool continuously launching new projects, the inscription market "arriving late but surely"...
Navigating Web3 tides with focused insightsBy Gou, Foresight News
It has been over two months since the series of events known as the "Binance crisis"—including Changpeng Zhao stepping down as CEO and Binance being fined billions of dollars. While Binance continues to fiercely battle U.S. regulators, the intense emotions that gripped everyone at the time have gradually subsided.
During these past two months, the cryptocurrency market reached a historic milestone: the SEC approved spot Bitcoin ETF applications, officially ushering crypto into traditional financial markets. Looking back, fueled by expectations around ETF approvals, the crypto market has resumed its accelerated pace. Meanwhile, Binance—once thought by many to be severely weakened—has shown remarkable resilience in the 70 days following the crisis.
Market Share Rises for the First Time in Nearly a Year
Data is the most telling indicator of an exchange’s health. Reviewing recent months reveals that Binance, which faced sustained regulatory pressure throughout last year, now shows signs of bottoming out and rebounding after the dust settled.
From the beginning of 2023, Binance’s monthly trading volume share declined steadily. According to The Block, including both USD-supported and non-USD-supported exchanges, Binance peaked at 62.25% in February 2023 but had dropped to 37.5% by November of the same year. After hitting this low point, December marked the first significant rebound in nearly a year, rising close to 40% (previous rebounds during the downtrend were less than 0.2%, essentially negligible).
When considering only exchanges that do not support USD trading, Binance’s share rose from 44.19% in November last year to 46.35%.
Moreover, Binance also saw month-on-month growth in absolute trading volume in December, increasing by 39.5% from $310.13 billion in November to $432.65 billion.
Although all the above metrics slightly dipped in January, they remained stable without any sharp declines seen earlier.
Breaking it down by product type, according to TokenInsight’s Crypto Exchange Annual Report 2023, Binance held a 53.7% market share in spot and derivatives trading in 2023—down from 60.1% in 2022, yet still ranking first overall. When separated into spot and derivatives individually, Binance maintained its top position with shares of 55.5% and 53.4%, respectively.
Additionally, on the evening of January 18 (Beijing time), Bloomberg published an article citing DefiLlama data showing that since reaching a settlement with U.S. regulators on November 21, Binance recorded a net inflow of $4.6 billion—far exceeding inflows at other exchanges. As of January 18, Binance had already attracted $3.5 billion in funds during the month, surpassing any single-month inflow since November 2022.
Image source: Bloomberg
Aggressive Launchpool Campaigns and BNB's Value Recovery
Since mid-December, Binance has launched six new Launchpool projects—a significantly higher frequency compared to the previous cycle, where six projects took over half a year. Binance’s Launchpool allows users to stake FDUSD, TUSD, or BNB to earn rewards in newly launched project tokens, serving as one of its key competitive advantages. While similar offerings exist across exchanges, Binance’s Launchpool and Launchpad remain focal points for market attention.
According to Binance, each of the recent six Launchpool campaigns attracted participation worth several billion dollars, with user counts ranging from hundreds of thousands to millions. Alongside growing user enthusiasm, the issuance of the new dollar-pegged stablecoin FDUSD has steadily increased.
First Digital USD (FDUSD) was initially announced in June 2023 by Hong Kong-based digital asset trust firm First Digital. Data provided by First Digital Labs indicates that FDUSD’s supply grew from approximately 966 million tokens as of November 30, 2023, to over 1.8 billion by December 31. According to CoinGecko, FDUSD’s current circulation may now approach 2.6 billion (pending official confirmation).
In addition to FDUSD benefiting from this momentum, BNB has also recently reversed its downward trend.
Impacted by the broader market downturn and aggressive regulatory actions in 2022 and 2023, BNB’s price fell from over $500 at the start of 2022 to a low near $180. It rebounded toward $400 by the end of 2022 but retreated back to around $200 last year due to ongoing regulatory pressures.
With regulatory uncertainties resolved and boosted by frequent Launchpool activities, BNB rebounded from $200 to nearly $340, outperforming the broader market and helping restore investor confidence in BNB.
Notably, these changes didn’t come solely from regulatory resolution but also coincided with the appointment of new CEO Richard Teng. Recent improvements at Binance may reflect his repeated emphasis on a user-centric strategic direction.
Changes Beyond the Numbers
Beyond measurable data, Binance has made progress across multiple fronts in recent months.
In terms of globalization, on January 16, Binance announced in a blog post that following its acquisition of a crypto trading and brokerage license in Thailand, Gulf Binance’s platform officially began full operations under the name Binance TH by Gulf Binance (Binance TH), opening access to all eligible users.
Binance stated in the blog that the Binance TH platform features an order book specifically designed for Thai baht trading pairs, enabling local users to trade using their domestic currency. Additionally, through integration with Binance Kazakhstan—an exchange regulated by the AIFC Financial Services Authority (AFSA) in Kazakhstan—users can access crypto brokerage services via the Binance TH platform.
Regarding exchange functionality, Binance highlighted recent updates to its Copy Trading feature. Launched in October last year, the feature achieved a weekly average trading volume exceeding $2 billion within three months. As detailed in a blog post on January 16, the latest update introduces simulated copy trading, private chat rooms, and the Sharpe ratio metric to help users better evaluate performance of lead traders.
Rohit Wad, Binance’s Chief Technology Officer, said that copy trading aims to build a social trading platform. Indeed, copy trading enhances user engagement; as users interact with experienced investors, they develop habitual use of the product, reinforcing Binance’s leadership in the industry.
Furthermore, Binance successfully passing the SOC 2 Type II compliance audit marks a significant milestone. Developed by the American Institute of Certified Public Accountants (AICPA), SOC 2 evaluates controls related to security, availability, processing integrity, confidentiality, and privacy. For crypto exchanges often criticized for lack of transparency, achieving SOC 2 certification affirms Binance’s strengthened internal control mechanisms.
Binance Web3 Wallet Launches Inscription Marketplace
Among Binance’s most discussed recent products is undoubtedly the Binance Web3 Wallet. In the Web3 wallet space, early movers like OKX and Bitget Wallet captured initial industry momentum, leveraging their exchange user bases and continuously integrating new projects and features to gain first-mover advantage.
Binance appeared late to this game but is now catching up rapidly. At the beginning of this month, Binance rolled out a major Web3 Wallet update, adding support for 29 DEXs and 15 cross-chain bridges, integrating 19 DApps—including 1inch, Compound, Convex, Curve, CyberConnect, Frax Finance, GMX, MakerDAO, Maverick, and Radiant Capital—and expanding compatibility to opBNB and Linea networks.
Responding to community demand, the inscription marketplace finally launched on Binance Web3 Wallet on February 1. Integrated with Unisat, the marketplace supports over 60,000 of the most popular BRC-20 tokens, enables multi-chain functionality via DApp integration, and includes a BTC transaction accelerator aimed at speeding up confirmations. With continuous iterations and optimizations ahead, Binance is poised to deliver an increasingly compelling offering. Though many wallets already support inscriptions, given the early stage of development, Binance still has room to “leapfrog” competitors in this domain.
Binance’s “Three Pillars”
After years of development, Binance has established a holistic framework built on three pillars: “Exchange + Binance Labs + Binance Web3 Wallet.”
The exchange remains the core. Binance Labs, functioning as an investment and incubation arm, leverages Binance’s industry-leading position, abundant resources, and capital strength to accelerate promising projects. For startups, there is no need to worry about listing or liquidity upon token launch. Meanwhile, Binance benefits by attracting high-quality projects and talented teams needing support, drawing more users in return—an ecosystem of mutual reinforcement.
As a newer product, the Web3 Wallet lowers the barrier for new users entering Web3 while providing existing exchange users convenient access to on-chain markets. In the future, users will be able to interact directly with various DApps within a single app, eliminating the need to switch tools across different scenarios. In the next market cycle, Binance’s accumulated advantages will expand further, with tighter integration among trading, investment/incubation, and Web3 wallets forming a closed-loop exchange ecosystem.
In 2023, Binance paid a steep price for its earlier period of rapid, unregulated growth, reflected in declining market share—a reminder that conquering territory is easier than holding it. Fortunately, Binance now appears to be finding balance between expansion and sustainability.
Entering 2024, having emerged from a year-long shadow, Binance is ready to look forward and begin anew.
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