Binance, the world’s largest cryptocurrency exchange by trading volume, has extended its market share for the fourth consecutive month. According to a report by CryptoCompare, Binance accounted for 42.7% of global cryptocurrency trading in February 2023, up from 40.6% in January. The report also showed that Binance processed more than $1.9 trillion in trading volume during February, an increase of 7.6% from the previous month.
The report also highlighted the growing dominance of centralized exchanges (CEXs) over decentralized exchanges (DEXs). CEXs, like Binance, accounted for 86% of the total cryptocurrency trading volume in February, up from 83% in January. DEXs, which operate on a peer-to-peer basis and do not rely on a centralized authority, accounted for only 14% of the total trading volume.
Binance’s market share growth comes as the exchange continues to expand its offerings and services. In January, Binance launched its own blockchain, Binance Chain, and its decentralized exchange, Binance DEX. The exchange has also been aggressively expanding its presence in the United States, with the launch of Binance US in 2019 and the acquisition of CoinMarketCap in 2020.
The exchange has also faced regulatory challenges in recent months. In February, Binance was ordered to cease all regulated activities in the United Kingdom by the Financial Conduct Authority (FCA). The FCA cited concerns over Binance’s compliance with anti-money laundering and counter-terrorism financing regulations. Binance has since announced that it will be withdrawing from the UK market.
Despite these challenges, Binance’s market share growth shows that the exchange continues to be a dominant force in the cryptocurrency industry. With the expansion of its services and the launch of its own blockchain, Binance is poised to continue its growth trajectory in the coming months.