How Binance Held Its Ground In Trade Volumes During 2023โ€™s Regulatory Onslaught

Despite facing a stormy year in 2023, Binance, the renowned crypto trading platform, has managed to maintain its position as the exchange with the largest trading volume.

A recent analysis from Bitining, a crypto educational platform, reveals that Binance currently holds a 43.8% share of the global crypto exchange trade volume.

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This figure, while lower than the 62.3% dominance it enjoyed at the start of 2023, still places it significantly ahead of its competitors, who collectively hold 56.2%.

Binance’s Tumultuous 2023: Regulatory Headwinds And $4.3 Billion Settlement

The year 2023 was particularly challenging for Binance, marked by regulatory challenges and increased scrutiny following the FTX collapse in 2022. The exchange, its US subsidiary, and its former CEO Changpeng Zhao, also known as CZ, faced heightened regulatory scrutiny.

This development became more serious with a pivotal moment on November 21, when Binance and Changpeng Zhao agreed to a $4.3 billion settlement with the US Department of Justice.

Mike Alfred, CEO of Digital Assets Data Inc., speculated that this could lead to the exchange partially liquidating its Bitcoin and crypto holdings, potentially influencing market dynamics.

Furthermore, the settlement included Zhao pleading guilty to charges of money laundering violation and agreeing to step down from his role at Binance. This move was part of a broader agreement with the Department of Justice and top regulators.

Binance’s Resilience: Leading Trade Volume And BNB’s Positive Trajectory

Despite these challenging developments, Binance has managed to hold its ground. According to recent data from Coinmarketcap, the exchange continues to outperform the others in trade volume.

In the past 24 hours alone, the exchange recorded over $15 billion in trade volume, significantly outpacing rivals such as Coinbase, which recorded $2.6 billion during the same period.

In tandem with the exchange’s performance, its native token, BNB, has also seen positive movement. Over the past day, BNB’s value has increased by 3.2%, trading at around $318 with a trading volume surpassing $1 billion.

BNB price chart on TradingView amid Binance challenges

Though this rise mirrors the broader rally currently seen across the crypto market, it also indicates a resilient and adaptive stance from the exchange amid a year of challenges.

Featured image from iStock, Chart from TradingView

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