Binance Market Share Allegedly Hits 77%; Criticism Grows

It is no secret that Binance advantages from FTX’s insolvency. After the second largest alternate on the earth went stomach up, different exchanges had to divide FTX’s market share amongst themselves.

And that Binance is one of many largest winners now appears to be confirmed by latest information. The Block claims that Binance now has a 75% market share on the spot market, 8.5 occasions greater than the second Coinbase.

Other Data Providers Do Not Agree

The chart is primarily based on CryptoCompare information and reveals that whole quantity for the month was $642.7 billion. Binance’s share of the yet-to-be-completed month of November reportedly equates to $481.7 billion.

However, there are discrepancies with different information suppliers. Their information doesn’t discover a large dominance by Binance.

Coinmarketcap, which was acquired by Binance in April 2020, reveals that the alternate at the moment has $12.5 billion in each day buying and selling quantity. It is adopted by Coinbase Exchange with $1.5 billion {dollars}, Kraken with $626 million and KuCoin with $495 million.

With a complete quantity of $44.985 billion over the previous 24 hours, this solely calculates to a a lot more healthy 27.8% market share for Binance.

CoinGecko, alternatively, tracks 544 crypto exchanges with a complete 24-hour buying and selling quantity of $59.5 billion. Binance’s market share is truly solely 21.7% primarily based on this determine. However, each information suppliers solely present each day volumes and thus not a whole image.

Binance Is In The Crosshair Due To Other Reasons

Regardless of the dialogue about Binance’s market supremacy, the alternate is within the crosshair of critics due to different causes. One of the harshest critics is Bitcoin analyst Dylan LeClair.

As he notes, BNB has made 9x in two months in the course of the bull run with barely a retrace, 10x versus BTC since 2021. “Must be a new paradigm,” LeClair wrote and shared the next chart.

Bitcoin vs BNB
Source. Twitter

The analyst drew comparisons to FTX and commented satirically; “I’m sure it was retail that sent BNB 10x in two months. Same with FTT, right?”, and shared a chart of FTT and BNB with the same value pattern.

“It definitely wasn’t the exchange operator with an incentive to drive up the price of their own token to create a feedback loop of attention, hype, and more users…. Definitely not,” LeClair additional commented.

He argues that the outperformance in opposition to “everything” is vital, and one ought to surprise what the rationale is.

Who is supporting this market (we all know), and do they have infinite cash? […] Think of some alts that outperformed this bull run? SOL (Alameda leverage and fraud), AVAX (3AC), LUNA (perpetual movement machine), and so forth.

To assist his conjecture, LeClair additionally regarded on the quantity aspect profile for BNB/BTC spot market and BNB/USDT perpetual swaps (leverage) on Binance. He discovered a putting disparity.

Source Twitter

While Binance CEO Changpeng Zhao (CZ) stated the alternate by no means makes use of leverage, customers are inspired to achieve this via varied presents on Binance, in accordance to the declare.

Also, CZ reiterated after the FTX collapse that Binance has by no means used its BNB token as collateral and has by no means taken on debt. LeClair solely commented, “CZ my man, I really hope you’re telling the truth.”

Jack Dorsey And Others Also Express Criticism

Remarkably, Twitter co-founder and former CEO Jack Dorsey took a stand on the matter, commenting: “All made up.” Dorsey is referred to as a Bitcoin proponent, however his assertion is obscure.

His solely different touch upon the topic was a response to “Bitcoin, not shitcoin” with “yes,” leaving the neighborhood at the hours of darkness as to whether or not he helps LeClair’s theses.

Renowned on-chain analyst Willy Woo additionally expressed cautious criticism of Binance, particularly on its Secure Asset Fund for Users (SAFU):

SAFU is deceptive advertising. It was boosted to “$1 billion,” however in the event you have a look at it intently and issue out the correlated influence of BNB and to a lesser extent BTC, the fund is actually solely good for 0.5% of the $68 billion in belongings on Binance. This is not hate, it is informing the general public.

At press time, BNB was down 0.9%, whereas BTC skilled a small surge and posted a each day acquire of two.5%.

Binance BNB USD 2022-11-30
BNB buying and selling at $300.70, 4-hour-chart. Source. TradingView

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