Just a few weeks ago Binance crypto exchange was crowned the king of cryptocurrency exchanges by volume of transactions but it has ceded that top spot to OKEx exchange after a dreadful period that saw the exchange lose more than 50 percent of its volume.
Volume on Binance Exchange down by Half
As Smartereum reported, a recent ranking of global cryptocurrency exchanges by Blockchain Transparency Institute had placed Binance atop the charts based on the volume of trade conducted on the exchange. The exchange, at the time, boasted an average 24-hour trading volume of just over $1 billion from about 160,000 daily users to beat OKEx which had $694 million from about 105,000 users. The stats were reflected by CoinMarketCap data as Binance, OKEx and Huobi maintained the top three spots on both rankings.
The tide has turned barely a month later after Binance lost a better portion of its trading volume dropping from over $1 billion in October to about $ 498,109 according to data from CoinMarketCap. OKEx, on the other hand, maintained its volume above $600,000 to become the biggest cryptocurrency exchange by trade volume.
Western Exchanges Suffer As Eastern Exchanges Boom
Binance was not the only loser this month as many Western-based crypto exchanges lost a significant percent of trade volume. Coinbase, one of the notable exchanges in the United States and Europe suffered an even more devastating loss in volume. The U.S.-based exchange lost over 80 percent of its average daily trade volume.
Asian exchanges, however, have seen a boost in their trade volumes in the same period. Notably, ZB.com and DigiFinex, both based in China, have recorded gains in trading volumes—about 23 percent and 37 percent respectively.
Binance is Doing Well despite Dip
Changpeng Zhao, founder and CEO of Binance exchange, maintained that the crypto exchange is doing well despite the drop in trade volumes. The outspoken boss often referred to as CZ is adamant that the trading platform is still posting a good profit despite the market condition. This is buttressed by the fact that Binance is set to post profits of about $1 billion in profits in 2018; this is no easy fit.
The exchange is doing so well that it decided to forfeit token listing fees, a revenue-generating means for many exchanges. As Smartereum reported, Binance decided to channel all fees it receives to its charity in a bid to improve transparency and bring confidence in the token listing process. It also says it will allow crypto projects to decide the amount they would pay to list their tokens.
Binance is also expanding its global reach entering markets new markets underserved by crypto exchanges. The exchange made history one week after it debuted in Uganda getting over 40,000 new African users in only one week of operations. It also set up shop in Singapore, where like in Uganda, it allows the purchase of cryptocurrency using fiat currency. Being a crypto-crypto exchange, Binance achieved this through partnerships with local payment providers.
The Binance team has also promised to provide “institutional-grade” cryptocurrency reports and insights through its newly launched Binance Research. As Smartereum reported, this is another effort to bring credibility to the cryptocurrency markets even as it continues to draw the attention of institutional investors.