Binance Expands Its Market Footprint and Dominance in March

UTC by Bhushan Akolkar · 3 min read
Binance Expands Its Market Footprint and Dominance in March
Photo: Depositphotos

The spot trading volumes on crypto exchange Binance are nearly four times that of its immediate competitors. In March 2022, the Binance spot trading volumes jumped 30% over the previous month.

Cryptocurrency exchange Binance continues to gain market share with every passing month. As per the latest data from CryptoCompare, Binance dominated 30% of the spot trading volumes during the month of March.

Simultaneously, the crypto exchange’s market share jumped 29% from its previous month of February. As per the data, during the month of March, Binance handled spot trades of $490 billion. This was also 15% more over the previous month.

The second to Binance was Coinbase at $81.9 billion and the third was OKX with $75.9 billion. It is clear that Binance leads its immediate competitors by a vast margin. Speaking of the development, Florian Giovannacci, head of trading at Covario, the Swiss-based digital asset prime broker said:

“Binance has had significant market share for quite some time already. They are very reliable (technically), cover a large array of tokens and offer some of the best liquidity, which attracts volume.”

One of the reasons Binance sees high trading volumes is the wide category of cryptocurrencies it supports. Thus, on any given typical day, Binance has four times the spot trading volumes that of its nearest competitor.

Crypto Activity Heated Up in March

After a crash in late February owing to Russia’s invasion of Ukraine, the month of March witnessed a good turnaround. The Bitcoin price touched a monthly high of $48,214. However, it has corrected 20% since then and is currently hovering around $40,000.

Thus, we can say that there was a fair bit of good investors participation in March 2022. Binance’s 30% spot market dominance in March 2022 was just below its record market share of 34% back in November 2021.

Furthermore, in March, derivates volumes surged after six-straight months of drop. The derivatives market surged by 4.6% to $2.74 trillion with a market share of 62%. This was twice in comparison to the spot market share volumes which was 37%. But during May 2021 last year, the derivative volumes peaked at $9.99 trillion for Binance. The CryptoCompare report notes:

“Binance was the largest derivatives exchange in March by monthly volume, trading $1.41tn (up 8.38% since February) followed by OKEx ($446bn, up 12.5%), Bybit ($380bn, down 8.82%) and FTX ($295bn, up 2.07%)”.

But the crypto interest seems to wane slowly in the month of March. As per the latest report from Bloomberg, “investors having pulled more than $417 million so far this month”. Speaking to the publication, James Malcolm, head of foreign exchange and crypto research at UBS, said:

“The vast majority of the population seem to have little interest in crypto because it’s too complicated, too volatile, too strange. So in a sense, we’re stuck at the moment.”

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