Key Points
- Binance’s cumulative spot volume reached $7.23 trillion in 2024, accounting for 46.59% of the total market share.
- Bitcoin investors on Binance remained optimistic throughout 2024, driving prices to record highs.
Binance, a leading crypto exchange platform, saw its cumulative spot volume reach an impressive $7.23 trillion in 2024.
This represented almost half of the total market share, demonstrating the platform’s dominant position in the crypto market.
Binance and Market Dominance
CryptoQuant reports indicate that Binance led the pack among other top exchanges like Bybit, Crypto.com, OKEx, and Coinbase.
The platform accounted for 34.65% of the total market share, a significant 11.94% more than its closest competitors.
This dominance suggests that a large portion of Bitcoin’s liquidity and price movements are directly tied to Binance.
It implies that the exchange’s performance impacts Bitcoin price trends and stability due to its high trading volume.
Implications for Bitcoin
Investor sentiment on Binance is a reflection of the broader market sentiment.
Throughout 2024, Bitcoin investors on Binance remained bullish, driving prices to new highs.
This optimism is evidenced by a positive Binance funding rate, with 10 months of 2024 recording a positive funding rate.
A largely positive funding rate indicates that investors are optimistic and willing to pay a premium for long positions.
Furthermore, Binance’s Bitcoin balances saw a significant decline in November 2024.
This suggests that investors were accumulating Bitcoin, withdrawing more assets from the exchange to personal wallets.
Historically, changes in Binance’s Bitcoin balances have influenced prices.
For example, when the balance dropped to a yearly low, Bitcoin surged to an all-time high of $108k in November 2024.
A similar pattern was observed in March 2024 when Bitcoin reached $70k for the first time.
However, a surge in Binance balances caused a price drop, as seen in August 2024 when prices fell to $49k.
The rising dominance of Binance in the market has had a significant impact on the crypto market.
The optimism of Bitcoin investors on Binance has driven prices to new all-time highs, positioning Bitcoin for more gains.
If traders continue to remain bullish on the exchange, Bitcoin could potentially reclaim the $96,700 mark.
