Binance’s Crypto Exchange Market Share Continues To Grow Over Coinbase, Bitfinex And Kraken
Binance Becomes One Of The Largest Exchanges In Terms Of Market Share
- Binance is the dominant crypto exchange in the market
- With a friendly regulatory environment, the platform was able to reach a larger number of users
Binance, one of the largest virtual currency exchanges in the market, has registered an increase in the market share compared to other exchanges. According to a recent report released by The Block, Bittrex and Poloniex have seen large drops in their marketshares. This situation is related to the regulatory environment and how these platforms operate and deal with it.
Binance Surges As A Popular Exchange
There are different cryptocurrency platforms in the market, some of them provide users with different features and unique services. Others just offer a basic trading exchange for individuals and investors to have access to digital currencies.
In a recent report released by The Block, they show how Binance has been growing as a cryptocurrency exchange with a large market share. Exchanges such as Poloniex, Kraken and Bittrex have been losing their presence in the market due to different regulatory issues.
Poloniex was a very popular exchange for trading a large number of tokens while Coinbase was considered to be the exchange for dealing with the most popular cryptocurrencies, Litecoin (LTC), Ethereum (ETH) and also Bitcoin (BTC).
Binance expanded as a new option for trading digital assets launched by Initial Coin Offerings (ICOs) and other projects in the market. When the exchange was launched in 2017, Binance had less than 5% of the total share of the market. Bittrex and Bitfinex and Poloniex were the best performing exchanges at that time with a large share of the market.
In February 2018, Binance was able to surge and reach over 30% of the total market share, becoming the largest exchange in the space. Poloniex and Bittrex experienced a large contraction. Indeed, in March this year, Binance almost had 75% of the total market share, which is a very large number considering the other exchanges The Block analyzed are also very popular and recognized.
Binance has been working over the last few years in order to expand the services that it offers to users. They are not only offering a trading platform but they have a digital asset (Binance Coin or BNB), a decentralized exchange platform (DEX) and its own blockchain network. Moreover, the firm is also helping companies launch their own tokens through the Binance Launchpad platform.
One of the main reasons behind this drop in the market share of other exchanges is related to the regulatory issues that they have been experiencing over the last months. As Binance is trying to operate in very friendly places with clear crypto and blockchain regulations, Kraken, Bittrex and Poloniex follow regulations from the United States, that tend to be harder for them and their expansion plans.
In the near future, Binance is expected to release new stablecoins to the market and support a wide range of virtual currencies backed by fiat. This is in order to help users have more choices for trading.