By the end of 2022, Binance’s share of the Bitcoin spot trading market will rise to 92%, according to Arcane Research. At the beginning of last year, Binance had a market share of only 45%, but the removal of transaction fees last June and the collapse of rival FTX both prompted users to switch to Binance.
Meanwhile, a report from CryptoCompare showed that Binance had a 66.7% share of the overall crypto market at the end of last year, well ahead of second-ranked Coinbase (8.2%).
Rumors of Binance’s solvency increased significantly after the FTX crash, and the exchange experienced some outflows for a short period of time, but the situation has since stabilized. Such a high market share could cause serious problems for the industry if Binance runs into any problems.