![]() But Binance got a big boost via the collapse of its premier global competitor, FTX. In 2023, the scale of all global transactions kept falling. Though Binance slightly grew its share, the overall retreat lowered its take by 26% to $23.3 trillion. ![]() Volumes fell by over one-third to $48.7 trillion. The frenzy cooled considerably last year. Binance captured an incredible $31.7 trillion, or 43% of those trades. In 2021, digital currency transactions boomed, reaching $74 trillion for the year, according to CCData numbers. So the all-in China number is bigger than $90 billion. The piece notes that the $90 billion figure for China “ trades made by a subset of very large traders.” It doesn’t take a stab at estimating how much crypto those whales are buying and selling on Binance. The Journal, however, adds an important proviso. This is an astoundingly low number that would signal a recent collapse in Binance’s revenues, and a strong probability it’s already booking losses. ![]() Hence, on an annualized basis, Binance’s sales would be running at around $5.4 trillion (12 months x $450 billion). The story specifies that the $90 billion comprises both spot and futures transactions, the latter the most important contributor by far. The Journal’s finding that China’s $90 billion in trading for May accounted for one-fifth of Binance’s overall business implies that its volumes for the month totaled $450 billion. And its capital rests primarily in a self-issued, relatively little-traded coin that-if Binance sells it to meet operating expenses-is vulnerable to a deep dive that could rock the crypto world. If Binance can’t collect enough revenue to cover its rent, personnel, data center, compliance, and marketing costs, it will need to start exhausting its war chest to meet the shortfall. The mystery centers on whether the damage is so severe that Binance, which CZ declares is “still profitable,” will soon start losing money. Some of the more well-known and most popular NFT games like Alien Worlds and Axie Infinity run on the blockchain behind BNB.Still, it’s clear that double hit from legal crackdowns targeting Binance and steep drop in overall trading of digital currencies has hammered the exchange’s volumes. Another area where Binance's blockchain and token play a significant role is that of GameFi - or 'play-to-earn' blockchain games that are powered by cryptocurrencies. Much like Cardano, Solana, and Terra, Binance Smart Chain consequently became a valid alternative to Ethereum: The total value locked (TVL) of BNBs blockchain within DeFi, for example, ranked only behind that of Terra and Ethereum in early 2022. Here, BNB started to support a chain that initially did not focus on hosting decentralized apps but focused on high transaction speed and being able to handle large amounts of traffic.ĭeFi and GameFi: the main segments for BNBBSC, however, made significant strides in 2021 partly due to traffic overload and high gas prices on Ethereum as well as the growing interest in both Decentralized Finance (DeFI) and NFTs. In 2019, however, BNB moved away from the Ethereum network and migrated to Binance's self-developed blockchain: Binance Smart Chain or BSC (called BNB Chain since February 2022). It initially functioned on the Ethereum blockchain network as an ERC-20 token, offering incentives to owners like reduced trading fees, affiliate rewards, or a lottery ticket system ('Launchpad') that let users invest in new, Binance-selected crypto projects. Noticeable is that the price increase of BNB in November 2021 coincides with a similar price change for Ethereum (ETH) - a cryptocurrency where BNB initially originated in 2017 before coming on its own years later.īNB's history: From reward token in 2017 to an ecosystem after 2019As the name suggests, Binance Coin or BNB originally started as an extension of the trading platform - the most used cryptocurrency exchange in the world. Regardless, Binance Coin ranked in the top 10 most expensive cryptocurrencies in 2022. dollars - a value that very different to the all-time high of 600 U.S. In September 06, 2023, for example, a single BNB coin was worth more than 214.36 U.S. The price of the native coin from BNB Chain (formerly BSC) grew by 50 percent in late 2021 but was much lower in 2022.
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