During a year plagued by crises such as the collapse of FTX and Celsius, data shows that crypto exchange Binance has emerged as the clear “winner” of 2022 according to Arcane Research.
A Jan. 3 report from Arcane highlighted that Binance saw its market dominance
Looking ahead to 2023, Arcane predicted in a Dec. 30 report that Binance would implement trading fees again in 2023 which would lead to a “normalization of the market dominance.”
As noted in a Jan. 3 report from digital asset data firm CryptoCompare, removing fees allows exchanges to attract customers but they “must be wary to remain profitable” and “cannot employ this strategy for long periods of time without hurting their bottom line.”
Binance could also be subject to increased regulatory scrutiny in 2023 — particularly relating to its native token BNB (BNB) — as following the fallout of the FTX empire there has been an increased focus on crypto regulations globally.
Analysis from Bitcoin advocate Nic Carter suggested while Binance’s CEO, Changpeng Zhao, has been vocal about his support for exchanges providing proof-of-reserves (PoR), the PoR provided by Binance was incomplete as “it only covers Bitcoin, which only represents 16.5% of their client assets.”
