The Binance exchange-backed layer-1 protocol, BNB Chain has announced the launch of the BNB Greenfield protocol as it seeks to take Web3.0 data ownership to a new level. Taking to its official Twitter page, the protocol said the new standard in Web3 data ownership and utility introduces a new structural and economic paradigm for data in the Web3 era.

BNB Chain is excited to announce the release of the BNB Greenfield whitepaper.

This new standard in Web3 data ownership and utility introduces a new structural and economic paradigm for data in the #Web3 era.https://t.co/6IZH1bJevW

[1/7] 🧵… pic.twitter.com/tlCi77ZwPb

— BNB Chain (@BNBCHAIN) February 1, 2023

Data ownership remains one of the most controversial subjects in the world today. Big tech giants like Amazon, Google, Facebook, and Microsoft control an enormous chunk of users’ data in a centralized manner. The rise of blockchain technology sought to overthrow this narrative by decentralizing access to data storage and ownership to return power back to the average user.

As a high-performance protocol, the launch of the new protocol is the blockchain’s own way of joining this revolution. According to the released Whitepaper, the protocol consists of a trinity that works together to provide a decentralized data storage system with users at the center. These three core aspect includes the new blockchain and its multitude of storage providers; the new BNB Greenfield dApps; and existing BNB Chain dApps.

The system is designed to harness the functionalities of these trio to ensure the appropriate safeguard of data in a decentralized manner. 

Operation model and benefits of BNB Greenfield 

According to BNB Chain, for users to utilize BNB Greenfield, they will need to upload their data with unique access and usage permissions. Once this is done, registered and verified storage providers will store that data off-chain with proper redundancy and backup. The Metadata of users’ BNB ledger is then stored on the BNB Greenfield blockchain. 

When this is done, “a native programmable layer connects BNB Greenfield with BNB Smart Chain, opening the door for both new and existing #dApps to leverage data stored on the network in new and exciting ways,” BNB Chain said.

BNB Greenfield is designed to benefit everyone within the Web3.0 ecosystem and while data can be stored faster, it can also be stored more cheaply when compared to the centralized alternatives around. The provision of personal Cloud Storage for users comes off as one of the major benefits of BNB Greenfield.

Additionally, the system will provide hosting and website deployment services, an offering that will directly compete with dominant giants like Amazon Web Services and Microsoft Azure. The protocol’s benefits also extend to a new social media model as well as the storage of Terabytes of Data from BNB Smart Chain and L2 Rollup Transactions

Today, data ownership and control has been tipped as one of the most defined roles blockchain technology will play in today’s digital ecosystem. According to BNB Chain, the release of BNB Greenfield is just the start of a whole new era that will shape the future of data ownership.

“The release of the BNB Greenfield whitepaper is just the beginning of a journey towards greater data independence, ownership, and opportunity for users, builders, and the #Web3 community.”

Der Beitrag Binance’s BNB Chain releases new standard BNB Greenfield in Web3 data ownership and utility – Report erschien zuerst auf Crypto News Flash.

The crypto market has recorded major events in the past twelve months both good and bad. According to a report by Binance Research, top layer 1 blockchains including Ethereum, BNB Chain, Solana, and Avalanche recorded significant on-chain activity in 2022. Leading layer 2 scaling solution Polygon (MATIC) gained significant market share following the collapse of Terra Luna. On the other hand, Solana (SOL) network was the most affected by the FTX implosion.

“The year was rife with material events in arguably the most important sub-sector within crypto,” the Binance report noted.

Evidently, Almost all blockchains recorded an increase in daily active users in 2022 led by Ethereum, BNB chain, and Polygon. However, the number of daily transactions on almost all blockchains significantly declined in 2022 apart from Solana which saw an increase of about 2 million in daily transactions.

CoinmarketCap

The layer 2 (L2) blockchains continued to complement layer 1s (L1) amid heightened global crypto adoption. The Ethereum merge was the largest event of the year following a successful migration of the ETH mainnet to the beacon chain.

There has been an idea that has been discussed among many in the crypto space that the major L1s will simply become settlement layers, while execution and activity happen on the L2s. While we are seeing a little bit of this already, 2023 might very well be the year that we see this happen on a much larger scale,

Crypto expectations for 2023

The crypto market began 2023 with a bullish sentiment with Bitcoin price obliterating losses incurred on FTX and Alameda fallout. However, market analysts expect the prices to correct and consolidate in the next coming quarters before retesting ATH later this year or next year.

Any idiot can make wild guesses about markets, so here is my dunce-hat prediction. In reality, nobody has a clue what any given market will do. $BTC pic.twitter.com/bpP2ThjnZK

— Peter Brandt (@PeterLBrandt) January 15, 2023

New crypto projects including Solana’s meme coin BONK and Aptos have taken center stage YTD. Furthermore, more institutional investors have shown great interest in the Web3 industry as shown by capital inflows in the past year. As a result, more developers are expected to enter the industry with the high demand for experienced blockchain engineers.

“Aptos (who went to mainnet in 2022 Q4) and Sui (who are expected to launch in early 2023).  Both of these L1s bring various innovations with them, including the Move programming language,” the report noted.

According to Binance, later 2 blockchains are expected to grow exponentially in 2023 and beyond. Moreover, the total value locked (TVL) in L2s is around $4.5B, compared to the total DeFi TVL in Ethereum at $25B, and the total crypto market cap sitting near $900B.

Der Beitrag What’s the state of Layer-1s and where are they headed? – Binance research erschien zuerst auf Crypto News Flash.

Top American crypto exchange, Coinbase, might soon become one of the main sponsors of one of Germany’s most decorated soccer teams, Borussia Dortmund (BVB). A report from a local media outlet, Handelsblatt, states that more details of the partnership between both parties will be fine-tuned by the time the German Bundesliga resumes. It is worth noting that Coinbase and BVB have been in partnership since July 2022.

But the exchange’s role has been limited to offering crypto education for the soccer club’s staff members. However, the new deal will enable Coinbase to get cam carpets adverts and perimeter advertising on the club’s home stadium, Signal Iduna park, which is widely regarded as the biggest stadium compared to the stadia of other German soccer clubs.

Another benefit of the partnership is that the club’s other marketing channels, including its social media, will be promoting the crypto exchange. BVB has won several titles within and outside Germany and boasts millions of football fans globally. However, a statement from one of BVB’s top-level executives, Carsten Cramer, revealed that the partnership’s duration would expire by June 2023.

Cramer explained that the duration of the partnership is short because the club wants to explore other alternatives if available. “Even though the industry is new, it is exciting, and that’s why we want to be flexible with our partnership arrangements,” Cramer added.

According to him, the soccer club is happy that Coinbase has a regulatory license to operate in Germany’s crypto space because the club won’t want to associate with a non-compliance platform.

Germany’s financial watchdog (the Federal Financial Supervisory Authority, BaFin) approved Coinbase’s crypto license in 2021, which allows the exchange to offer trading and crypto custody services to German crypto users. Cramer also commented on the status of Coinbase’s regulatory license saying,

BaFin’s approval license gives us the confidence to partner with this global brand as this industry is still new and many of those outside the industry are still confused on how it works.

Despite these positives for Coinbase, the exchange isn’t without its troubles. The 2022 bear market took its toll on the company as it laid off 18 percent of its staff members in 2022 and another 950 employees earlier this month. Furthermore, the exchange announced a pause on its operations in Japan’s financial market, citing the harsh economic environment.

More crypto exchanges partner with soccer teams

Coinbase’s expanded partnership is the latest in many collaborations between crypto exchanges and soccer teams. For instance, Binance is the primary jersey sponsor of the Italian soccer team Lazio and Argentina’s national male team. Binance also partners with the star football player Cristiano Ronaldo to launch his NFT collection.

Similarly, Bitget (another top crypto exchange) is a sleeve partner with Juventus (arguably, the most successful soccer club in Italy). Bitget is also in partnership with 8-time Ballon d’Or winner Lionel Messi. The Bitget-Messi partnership will enable Messi fans to explore the Web3 space and crypto trading on Bitget’s platform.

Der Beitrag Coinbase Bitcoin exchange to become biggest sponsor of Borussia Dortmund football team – Report erschien zuerst auf Crypto News Flash.

The members of the Cardano community are ecstatic with the prospect that founder, Charles Hoskinson may be on the verge of submitting a bid for the media giant, Coindesk. It was recently made public that the crypto news platform is up for sale following the uncertainty surrounding the future of its parent company, the Digital Currency Group (DCG).

Hoskinson took to his official Twitter account and shared that he just discovered the media platform is for sale and that he will make some calls to know the asking price for the news outlet. The community was particularly intrigued by this announcement and many are already prompting the veteran crypto developer to make the decision to buy Coindesk. 

You know, I just realized that Coindesk is for sale. pic.twitter.com/QqmBPOClpu

— Charles Hoskinson (@IOHK_Charles) January 19, 2023

One user with the handle, @MandarinCrypto said rather than Hoskinson buying the media firm as a sole investor, he should consider letting the community make the acquisition, a move he claims should be legally represented using Non-Fungible Tokens (NFTs). While this suggestion appears as one of the most innovative use cases of ADA, and the blockchain, there will still be regulatory bottlenecks that prospective buyers may have to pass through.

Coindesk plays a very vital role in the evolution of information surrounding the Web 3.0 space. The company was acquired by the Digital Currency Group in 2016 for the sum of $500,000 according to a report by TechCrunch.

While the current valuation of the company remains unknown, the firm is reported to have received offers of as much as $200 million, and if true, Hoskinson or the Cardano community will need to cough out this much money in a short period of time. Should Coindesk be sold off at a price higher than its 2016 purchase price, it will amount to a significant return on investment at a time when Web3 companies are notably recording major devaluation.

Is Coindesk a good fit for Charles Hoskinson?

Should Charles Hoskinson proceed with the rumored plans to place a bid for Coindesk, it will represent a major diversification for the Cardano ecosystem. For Hoskinson, who is always media friendly, being the majority owner of Coindesk can help push the work he is doing with Cardano to the frontlines.

One user even commented that the acquisition, if it pulls through, will enable Hoskinson and the Cardano team to write the wrong narratives that Coindesk has peddled over the years regarding the Cardano blockchain and its ecosystem.

It is not uncommon to find crypto executives investing in a media platform. Binance Exchange through its Chief Executive Officer, Changpeng “CZ” Zhao also made a $200 million investment in Forbes back in February last year. The strategic investment as it was called at the time was considered a getaway investment for the trading platform which was always under the crosshairs of Forbes’ investigative journalism.

While the need to sell CoinDesk either fully or partially has been confirmed by the current CEO, there has been no official indication as to whether Hoskinson or any other crypto firm or personality is interested in the media firm.

Der Beitrag Will Cardano’s Charles Hoskinson buy media giant Coindesk? Community discusses joke about different use cases in ADA ecosystem erschien zuerst auf Crypto News Flash.

As the centralized crypto exchange (CEX) crisis continues to drive discussion, the world’s largest digital asset trading platform plans to improve its institutional services to clients. Accordingly, Binance has introduced cold custody services to allow institutions to store crypto assets offline.

Binance Mirror comes on Onboard

Binance announced on Monday the launch of its off-exchange settlement solution, Binance Mirror, that would allow institutional investors to trade and store cryptocurrency through cold custody. Furthermore, the newly launched service is reported to be under the control of Binance Custody, a regulated institutional digital crypto asset custody platform. The Binance Mirror service involves copying cold-storage crypto assets from the Binance wallet and is held on a 1:1 collateral basis.

In explaining the new service, Binance stressed that the solution comes with more security, allowing traders access to the exchange’s ecosystem without needing to post collateral on the system directly. Binance Custody service, founded in 2021, is a custodian outlet with cold storage that ensures crypto assets’ security against loss, stealing, or internal compromise.

Last March, Binance Custody obtained approval for cold-wallet insurance from Lithuania’s financial regulators. The license allows the exchange to operate an institutional-level crypto asset custody solution. As a result, Mirror makes up over 60 percent of all tokens secured on Binance Custody.

Commenting on the latest development, a spokesperson for the company revealed that the user feedback on the Binance Mirror service has been positive. As such, the exchange is happy to officially announce it to the market, added the spokesperson. However, whether the exchange intends to continue providing similar services to retail users is unknown.

The latest news comes a few days after the world’s largest crypto exchange witnessed a significant drop in liquidity. Outflows of billions of dollars of crypto left the trading platform toward the end of last year. Moreover, the liquidity crunch is attributed to the crisis facing CEXs, worsened by the FTX collapse as investors flocked to self-custody services by leaving centralized platforms en masse.

CEXs Face Possible Extinction

As the demand for self-custody platforms is becoming the industry craze, CEO Changpeng Zhao recently admitted that CEXs are possibly fighting a losing battle to remain in business, especially after the FTX debacle. However, some industry experts opined that the end for CEXs is not near, even as the crypto ecosystem continues to feel the brunt of the FTX collapse.

In a December 2022 publication on Forbes, analysts noted that even though investors realized that the FTX crash was due to fraud, investors remain skeptical of storing their funds in centralized exchanges. The FTX crash might have created a huge mistrust in CEXs, but that does not imply that these CEXs would be out of business soon.

Meanwhile, a top-level executive with a leading virtual asset service provider, Matrixport, Markus Thielen, remarked that Binance’s new service is a laudable effort at building trust with institutional investors, assuring them that their funds are safe. Thielen added that the move signifies that Binance is gradually shifting its focus to become the primary CEX for institutional investors.

Der Beitrag Binance will bring billion-$-institutions to flood the market with money through new service – Report erschien zuerst auf Crypto News Flash.

The cryptocurrency market has continued to surge despite increasing regulatory scrutiny of crypto firms globally. In the past weeks, regulators have been revisiting investigations into crypto giants including Binance, and most recently Nexo, Gemini, and Genesis.

According to the Washington Post report, Binance is facing a possible indictment by U.S. Federal prosecutors. In recent months, the U.S. attorney’s office for the Western District of Washington in Seattle has sent subpoenas to Binance-related investment firms.

The subpoenas directed the firms to hand over records of their communications with Binance. This is to help it in its ongoing investigations into potential violations of money-laundering rules. A Binance spokesperson reveals that the exchange is cooperative with the US and other global regulators.

In the case of Nexo, the all-in-one crypto platform is facing regulatory pressure from its home country of Bulgaria. Standart News, a local news outlet, reports that Bulgarian authorities raided the offices of the exchange earlier this week.

The raid was conducted by prosecutors, specialists from the National Investigation, and DANS employees, together with foreign agents. The authorities allege that Nexo partook in a large-scale money laundering scheme and violated international sanctions against Russia.

Nexo took to Twitter to deny the allegations, noting that it has never compromised with its very strict anti-money laundering and KYC requirements. It also criticized the raid of its office by the regulators, describing it as bordering on racketeering.

Over the years, we have turned down a lot of business because Nexo never makes compromises with regard to our very stringent anti-money laundering and know-your-customer policies. But we have always known that this is how you build a sustainable business. 1/

— Nexo (@Nexo) January 12, 2023

Meanwhile, the market also recently received news of the U.S. Securities and Exchange Commission (SEC) bringing charges against Gemini and Genesis. The securities watchdog alleged in its complaint that the parties engaged in the offer and sales of unregistered securities through the Gemini Earn product.

Bitcoin (BTC) and Ether (ETH) continue uninterrupted price surges

The crypto market has shown remarkable resilience amid the regulatory troubles of the crypto giants. The two market-leading cryptocurrencies Bitcoin (BTC) and Ether (ETH) are among the tokens showing printing remarkable price gains.

BTC is up 3.98 percent in the last 24 hours, trading at around $18,900. The benchmark crypto has also reached a local high of $19,000, a price level it last traded at in November 2022.

Similarly, ETH is up 0.49 percent on the daily chart, trading at around $1410. The price marks a 17.8 percent gain recorded year to date (YTD). Meanwhile, the entire market is again approaching a total capitalization of $1 trillion.

Notably, the market’s performance is in part thanks to bullish on-chain and macroeconomic events. It received its latest bullish spark yesterday as U.S. CPI inflation data came in lower as largely expected by market participants.

Der Beitrag Binance faces indictments, Nexo gets raided by police, SEC sues Gemini but Bitcoin and Ethereum price rises – Report erschien zuerst auf Crypto News Flash.

The new year is unfolding with Shiba Inu standing out as one of the most promising memecoins of 2023. The memecoin has attracted Binance, the leading crypto exchange, which has recently staked a staggering $36 million worth of SHIB.

As noted in some recent tweets by the popular Twitter whale tracker account “WhaleAlert”, Binance reportedly moved 4 million Shiba Inu to an unknown cryptocurrency wallet. The transaction is one of the largest transactions made by a whale account for Shiba Inu this year.

The $36 million worth of SHIB was later staked by the Binance exchange, as disclosed by Shibburn.

Shibburn, a platform dedicated to tracking token burns of Shiba Inu, had paid close attention to the move and explained that Binance staked exactly 4 million Shiba Inu on the DEX exchange ShibaSwap.

Prior to staking the tokens, Binance had also made a Shib transaction worth $116,231,611. The tokens were first staked, and later removed by the crypto exchange shortly after.

Sorry guys, there's something that I didn't notice at first, yes there was 4 trillion staked but… there's also this transaction. 12,661,395,600,288 $SHIB ($116,231,611) was previously was un-staked from ShibaSwap by Binance, then 4 trillion was re-staked.https://t.co/PDeSyGC8fo

— Shibburn (@shibburn) January 10, 2023

The transaction is particularly bullish for Shiba Inu, as the purchase decreases the token’s overall circulating supply.  The more SHIB tokens are taken off the network, the lesser the supply, and the higher the demand for the asset as it becomes even more scarce.

Can Binance drive the Shiba Inu token to $0.20?

Although Binance’s transaction might not drive the memecoin to the $0.20 price level that is being anticipated by market players, it is left to be seen, where Shib is headed next.

The staked SHIB tokens were only temporarily taken out of the market, as such it is not certain what Binance’s next move will be. But in the meantime, the transactions hint that the exchange is on the bullish side of the market.

It also is worth noting that near-term price predictions for Shiba Inu in 2023, as noted by analyst Changelly is $0.0000088391. The analyst disclosed that the predictions were influenced by the price instability of Shiba Inu at the start of 2022.

Cryptocurrency experts are now predicting that minimum and maximum prices for Shiba Inu later in the year could go up to $0.0000080792 and $0.0000090891 respectively.

At report time, Shiba Inu is valued at a price of $0.000008757, after losses climbed to 5.2% in the last 24 hours.

Meanwhile, the Shib burn continues, with a total of 17,120,687 SHIB tokens burnt in the last 24 hours. The burn rate is now up 46.44%, bringing Shib’s circulating supply to 589,615,521,307,469 SHIB.

As the burn rate for Shiba Inu continues to increase, supply is bound to drop drastically, and demand for SHIB is poised to skyrocket over the next couple of months. the market might see new hands being ushered in as a result.

Der Beitrag Bullish for Shiba Inu: Binance stakes 4 trillion SHIB worth $36M – Will it drive the price to $0.20? erschien zuerst auf Crypto News Flash.

Data analytics platform CryptoQuant has pointed out new data that shows revenue growth at Binance despite recent concerns raised about the crypto exchanges’ solvency.

In a tweet, CryptoQuant noted that Binance’s annual revenue has been on a growth path. Binance’s annual revenue reached $12 billion in 2022, a more than 10x growth in the last two years.

Binance also performed the feat in a period that saw revenues plunge dramatically at other exchanges. Huobi’s quarterly revenue dropped 98% since Q1 of 2021 and FTX collapsed back in November.

OKX exchange, which like Binance saw organic revenue growth, recorded a 4x increase propped up by burning OKB tokens.

'@OKX’s revenue shows 4x organic growth over the past two years.

They burn or buy back OKB tokens based on spot trading fee revenue. It was around $948M last year. pic.twitter.com/aPMeKvgOzp

— CryptoQuant.com (@cryptoquant_com) January 10, 2023

The CryptoQuant analysis comes after Arcane Research revealed in a recent report that Binance dominated other exchanges in 2022. The report found that Binance controlled 92 perent of all Bitcoin (BTC) spot trading. The exchange also facilitated 61pecent of the BTC derivatives trading and enjoyed 49 percent dominance of the crypto perpetual open interest (OI) market.

The report added that Binance also scored other wins during 2022 that point to financial health. BNB, its native token, outperformed both BTC and ETH. Whilehe exchange was one of the only crypto firms to increase its employee headcount during the bleak year.

“There are no other evident ‘winners’ of 2022 other than Binance when it comes to the crypto market structure and market dominance,” Arcane noted.

Binance continues to focus on the positives in 2023

Despite the growth, recent speculation has been that Binance could be facing solvency issues, especially since the collapse of FTX. In a recent report, Forbes alleged that Binance is likely playing down the amount in withdrawals happening at the exchange.

The news outlet maintained that over $12 million worth of assets have left the exchange in the last two months. The report also highlighted that Binance’s reserve asset holdings remain disputed as there is no consensus among data firms on how to measure exchange assets.

Hence, the report alleges that the exchange could be hiding financial red flags. It further noted that Binance’s CEO Changpeng Zhao had a hand in the collapse of FTX when he announced that Binance would sell its remaining holdings of FTT tokens.

Commenting on the report, Binance CEO Changpeng Zhao stated that Forbes may need help with keeping track of the crypto market. He reiterated his often repeated mantra of ignoring FUD.

Think they may need an app to check the crypto market. 😂🤷‍♂️

Alright, will do 4, and ignore from here. https://t.co/GP67A5iThk

— CZ 🔶 Binance (@cz_binance) January 10, 2023

Ignoring FUD and serving customers is an approach Binance is adopting increasingly. The exchange has previously pointed out the fact that amid the massive withdrawal spree, it has successfully processed all user transactions. It was able to do this because it backs investors’ assets 1:1, has not given out any loans with user assets and has a debt-free capital structure.

Der Beitrag Binance revenue grows 10x in 2 years – Exchange and Bitcoin market is safe – Ignore FUD erschien zuerst auf Crypto News Flash.

A new study by an on-chain asset management firm, Ren & Heinrich, reveals that token prices surge by over 70 percent within a month of their listing on the Binance crypto exchange. The study monitored the listing of 26 coins for one and a half years. According to the report, tokens usually record a 41 percent rise within 24 hours of their listing on Binance, while they gain 24 percent by the third day.

The Ren & Heinrich research proves that tokens benefit from their listing on Binance like they do when they’re listed on Coinbase (termed the Coinbase effect), even if such price surges are short-term. Two years ago, the Coinbase effect became an industry term when token prices surged following their listing on United States’ number one crypto exchange.

An April 2021 study by on-chain analytics firm, Messari, revealed that the price of tokens listed on Coinbase usually rises by 91 percent within five days of the listing. The latest study by Ren & Heinrich indicates that tokens listed on the Binance exchange would attract the interest of traders since Binance is now the leading crypto exchange worldwide.

Primary Reasons For The Binance Effect

Ren & Heinrich wrote, “a Binance listing usually impacts crypto’s price positively.” The report added that the “Binance effect” is a side benefit of its huge trading volume, which is the highest among its competitors. As of January 5, 2023, Binance’s trading volume was about $7.5 million, nearly three times that of its competitors.

Messari’s data science and analytics manager, Roberto Talamas, believes that the easy-to-use user experience (UX) and the exchange’s liquidity contribute to the Binance effect. Binance’s UX design makes it easy for technical and non-technical persons to perform crypto transactions on the platform.

Talamas further explained that there is more liquidity flowing into Binance at the moment compared to other exchanges. Hence, tokens listing on the platform would positively affect such tokens’ prices. According to him, Coinbase was the only exchange that data shows have had such effects on token listings.

Meanwhile, the Ren & Heinrich study revealed that tokens usually record a 73 percent price increase on their 30th day of listing on Binance compared to the first day of listing. The report cited the example of the listing of Stargate Finance’s native token (STG) on Binance.

On the listing day, STG’s price rose from $0.33 to $0.80, a rise of 152 percent. However, the report added that these price surges are usually short-term. About 50 percent of all cryptos lose their gains at least six weeks after the listing. But the study observed a better performance from coins listed during the bull market than those listed during the bear market.

Is the Binance effect better than the Coinbase effect?

Talamas opined that the primary factor contributing to the Binance effect (easier accessibility for retail investors) is the same as that of the Coinbase effect. He added that industry analysts agree that the Binance effect can be more profound if Binance can attract users and funds from its competitors, as these additions would increase its liquidity and user base. Grzegortz Drozdz, a top-level executive with Conotoxia, a financial services firm, shared similar sentiments as Talamas.

Drozdz estimates that more than 65 percent of tokens launched on Binance last year recorded considerable price gains. For instance, optimism (op)’s price soared by over 300 percent within a short period of its listing on Binance. He predicted that tokens listed on Binance this year would experience more significant price surges than last year’s listings, indicating that the ‘Binance effect’ has replaced the ‘Coinbase effect.’

Der Beitrag This is how you can make a fortune using the ‘Binance effect’ – New listings surge 41% on average erschien zuerst auf Crypto News Flash.

Binance, the world’s largest cryptocurrency exchange by trading volume, has emerged as the preeminent venue of Bitcoin (BTC) trading in 2022.

Arcane Research, a crypto-focused data-driven analysis and bespoke research firm, revealed this in a new report. Per the report, Binance captured 92 percent of all Bitcoin spot trading volume in 2022 as of Dec. 28. This is a more than a 2x increase from the 45 percent BTC spot market volume the exchange controlled at the start of 2022.

The exchange also controlled 61% of the BTC derivatives market by volume in 2022. The figure is about a one-third increase from Binance’s market share at the start of 2022. Meanwhile, it enjoyed 49% dominance of the crypto perpetual open interest (OI) market.

“There are no other evident ‘winners’ of 2022 other than Binance when it comes to the crypto market structure and market dominance. No matter how you look at it in terms of trading activity, Binance is the crypto market,” the report said.

Arcane adds that it is non-negotiable that Binance’s 2022 performance consolidates its dominance over BTC spot markets. The report also points out that Binance’s dominance predates the collapse of FTX. The spot market dominance began to rise in July when Binance eliminated all trading fees for its BTC spot pairs.

Meanwhile, Binance also scored other remarkable wins in 2022. Arcane highlights that Binance saw its dominance of the stablecoin market increase, and saw its native BNB token outperform BTC and ETH.

The exchange was also a “clear outlier in terms of employment” in 2022, the research notes. Binance doubled its employee stack in a year that saw many crypto firms laying off employees or going bankrupt.

Could Binance’s dominance be a threat to the crypto market?

Significantly, Binance’s performance was anticipated before the year ran out. CryptoCompare’s November exchange review report noted that Binance had clinched its highest-ever market share dominance at 52.9 percent shortly after the FTX collapse.

However, the performance has raised concerns among crypto market participants. These concerns center around Binance becoming a monopoly. This outcome could threaten the crypto market’s stability.

“Retail crypto could enter a dark age that takes forever to exit should Binance fail. Binance is too big… It is not healthy to have so much of the trading volume concentrated with any one exchange,” Edward Moya, senior analyst at Oanda, said.

His concern comes on the back of Binance recently being embroiled in controversy over its solvency. Binance released a proof-of-reserve (PoR) audit report for its BTC holdings backing user assets. Critics have however pointed out that the report only shows assets without showing the exchange’s liabilities.

Adding to the unrest is the announcement by Mazars that it was ending all work for crypto clients. The accounting firm carried out Binance’s PoR audit, along with those of Crypto.com and KuCoin.

Der Beitrag Curse or blessing? Binance controlled 92% of Bitcoin trading volume at the end of 2022 – Report erschien zuerst auf Crypto News Flash.