In an unprecedented surge, Binance, the world's leading cryptocurrency exchange, has seen user deposits soar past the $24 billion mark in 2024, according to DefiLlama. This tremendous influx of funds, reaching $24.213 billion since the start of the year, places Binance significantly ahead of its competitors. Bybit and OKX trail far behind with deposits at $8.2 billion and $5.3 billion, respectively.
The exchange attributes this growth to the increasing worldwide adoption of digital assets, bolstered by regulatory advancements and the introduction of spot Bitcoin ETFs in major markets like the U.S. and Hong Kong.
Intriguingly, Binance's user base has also expanded, now approaching the 250 million mark. While Binance surges ahead with inflows, other exchanges have experienced diverse outcomes.
DefiLlama reports net inflows for BitMEX, Robinhood, and HTX at $3.45 billion, $3.165 billion, and $2.12 billion, respectively. However, Bitstamp, Bitfinex, and Crypto.com have faced outflows amounting to $2.75 billion, $1.77 billion, and $358.1 million.
Institutional investments have significantly contributed to Binance's expansion. On average, Bitcoin deposits on the platform increased from 0.36 BTC to 1.65 BTC in 2024, while Tether deposits leaped from $19,600 to $230,000, reported by CryptoQuant on December 3. Binance's leadership is similarly evident in its trading volume, now the first centralized exchange (CEX) to exceed $100 trillion in lifetime trading volume, outstripping OKX's $25 trillion by a considerable margin, per CCData.
Despite anticipations for a pivot towards decentralized exchanges (DEXs) after FTX's collapse in November 2022, CEXs still dominate crypto trading volumes. In the last 24 hours, CoinGecko recorded $276 billion in trades across 218 CEXs, in stark contrast to just $28.5 billion on DEXs.
In 2024, a new era is emerging, notes Binance CEO Richard Teng, emphasizing the uptick in institutional participation from traditional markets. This shift is expected to be a central topic at Binance Blockchain Week in Dubai, occurring from October 30 to 31.
Nevertheless, Teng maintains that discussions on re-entering the U.S. market are premature after Binance's exit in November 2023. Despite an upcoming administration under President-elect Donald Trump, anticipated to be more crypto-friendly, Teng states, "Whether we re-enter the US market, I think that’s a premature discussion." Meanwhile, Binance continues its global outreach, launching Binance Thailand, in a joint venture with Gulf Innova, affiliated with Gulf Energy Development, earlier this year.
Crypto exchange volumes reached unprecedented levels in November, spurred by Donald Trump's re-election and heightened optimism towards favorable crypto regulations. Market tracker New Hedge recorded spot trading volumes at a three-year peak of $2.9 trillion for November, the highest since May 2021. Furthermore, November marked a landmark for Bitcoin ETFs in the U.S., with investors funneling $6.4 billion into spot BTC ETFs.