Arcane Research highlighted that Binance has emerged as the clear winner of 2022. The crypto exchange saw its market dominance soar throughout 2022. It captured 92% of the Bitcoin spot market and 61% of the BTC derivatives market by volume. Arcane Research said there are no other evident winners of 2022 than Binance when it comes to the crypto market structure and market dominance.
The firm highlighted that Binance’s BTC spot market dominance was 45% at the beginning of 2022. It more than doubled and the BTC derivatives market increased by almost a third. Arcane Research defined spot trading as an indicator that measures the total amount of Bitcoin being transacted on spot exchanges on any given day. It said the increase in Binance’s BTC spot market dominance predated the fallout of the second-largest exchange by volume FTX. It surged after it removed fees for certain trading pairs on July 7, 2022.
Binance also had acquisitions to boost its global coverage in 2022 such as the Sakura Exchange BitCoin and Tokocrypto. Arcane Research highlighted Binance as one of the few exchanges to increase the number of staff it employs over the year while fellow companies like Kraken and Coinbase were forced to lay off staff during the slump.
For 2023, Arcane Research said Binance would implement trading fees again which would lead to a normalization of market dominance. The crypto exchange would also see increased regulatory scrutiny.