Major crypto exchange Binance has touched 250 million users amidst its 21st global regulatory approval today. Binance has strengthened its position as a leader amongst other exchanges like Bybit, Coinbase, OKX, and Upbit by capturing 50% of the market share in trading volume despite struggles with its internal leadership and problems with the regulatory landscape.
The milestone shows how Binance takes competition to dominate the crypto market, which is reflected in the CEO's reaction after the Brazil approval.
"We are thrilled to announce our latest regulatory approval. A market with burgeoning crypto adoption, Brazil is home to a vibrant and dynamic community that is readily embracing the future of finance. We thank local regulators for their commitment to defining clear rules for this important, growing industry. This approval underscores our commitment to compliance and security, and we look forward to continuing to provide our local users with a secure, reliable, and innovative platform for their digital-asset needs”, said Binance CEO Richard Teng.
Now let’s take a look how Binance is faring comparing to other crypto-exchanges.
Taking the Lead in Trading Volume
A comprehensive analysis of trading metrics reveals Binance's commanding market position. With approximately $17 billion in 24-hour trading volume, Binance substantially outperforms its closest competitors. Bybit, the second-largest exchange by volume, reports $5.3 billion, while Coinbase processes $3.6 billion. OKX and Upbit follow with $2.6 billion and $4.9 billion respectively, illustrating the significant gap between Binance and its competitors.
Market Share Comparison (24-hour Trading Volume):
- Binance: $17 billion (50.3% of total volume among top 5)
- Bybit: $5.3 billion (15.7%)
- Coinbase: $3.6 billion (10.7%)
- Upbit: $4.9 billion (14.5%)
- OKX: $2.6 billion (7.7%)
How is Binance faring in other trade metrics?
The exchange's dominance extends beyond trading volume. Binance leads in average liquidity with a score of 879, followed by Coinbase (772), OKX (726), Bybit (676), and Upbit (581). These figures demonstrate Binance's superior market depth and trading efficiency.
Perhaps most striking is Binance's overwhelming lead in weekly platform visits. The exchange attracts 17.2 million weekly visitors, dwarfing Bybit's 5.59 million and OKX's 5.34 million. Notably, Coinbase, despite its strong brand recognition, records significantly lower traffic at 82,879 weekly visitors, suggesting a potential shift in user preferences or market dynamics.
How did Binance achieve this?
Despite these impressive metrics, Binance's journey hasn't been without obstacles. The exchange faced significant regulatory challenges in 2024, including SEC allegations of securities violations in the United States. The impact was particularly evident at Binance.US, which experienced a 75% revenue decline and was forced to reduce its workforce by approximately two-thirds.
The appointment of Richard Teng as CEO marked a strategic pivot toward regulatory compliance. As Teng articulated in a recent interview, "It's really about building a sustainable enterprise that will not only succeed over the next few years but continue to prosper for the next 50 to 100 years. That's certainly our aspiration."
Competitive Landscape Analysis
The competitive dynamics between centralized exchanges (CEXs) like Binance and decentralized exchanges (DEXs) such as Uniswap and PancakeSwap present an interesting contrast in the market. While DEXs offer enhanced privacy and decentralization benefits, they often struggle with user experience and liquidity challenges, limiting their mainstream appeal.
What does it mean for Binance and the crypto market in 2025?
The fact that the crypto exchange Binance hit 250 million users shows the growth of digital asset adoption across the world. However, the exchange faces significant challenges in maintaining its market lead as it faces regulatory issues in multiple countries like Nigeria, the US, and Australia. But despite that, it became the first crypto exchange to get approval to operate in Brazil today.
The remarkable difference in Binance and other crypto exchanges regarding user base and trading metrics points towards a consolidation of market power, which could heavily influence the industry in the future. As the crypto market matures with more people adopting digital assets, the balance between DEX and CEX will determine how traders make decisions and participate in the market.
The resilience of the Binance business model is visible in the way it has attracted and retained crypto users despite regulatory challenges, which might translate into other exchanges taking notes from it. At present, there seems to be a clear preference for centralized exchanges amongst mainstream traders. However, how Binance will maintain this lead in 2025 as it enters new territories and gets under more critical regulatory scrutiny remains to be seen. This would determine if Binance can hit its goal of 1 billion users by 2025.