By George Ward
According to The Block on-chain analytics firm, crypto holders preferred Changpeng Zhao’s crypto exchange Binance over other crypto exchanges for their crypto transactions in the last 48 hours. Crypto trading volume on Binance far exceeds that of competitors such as Upbit, FTX, Coinbase, and KuCoin.
The controversial crypto exchange dominates trading volume on two crypto markets (Spots and Derivatives). Spot trading involves buying and selling a crypto asset based on the current market price.
Like traditional derivatives products, crypto derivative trading involves the execution of trades based on an underlying asset. The value of the underlying asset usually determines the value of the derivatives.
Derivatives are also traded at specific times and predetermined prices. The Block’s data estimates Binance’s dominance of spot trading volumes over other crypto exchanges at 55% over 24 hours.
CZ’s exchange is way ahead of the competition, with the South Korea-based UpBit exchange coming a distant second at 6.1%. The data also revealed that Binance, UpBit, Coinbase, and OKX are the only four crypto exchanges worldwide to record more than 5% spot trading volume.
Binance also powers 54% of derivatives trading volume in the last 48 hours, according to the Block’s data. FTX (8.9%), ByBit (10.2%), and OKX (14%) are the three exchanges with the closest derivatives trading volume to Binance.
Binance Expands Its Crypto Business
The Block data confirms that CZ’s exchange is the leading platform for derivative and spot trading, among other exchanges. Coincidentally, the data comes when Binance is moving to expand to markets in other regions.
Binance has focused on establishing its presence in Europe this year. So far, it has obtained regulatory licenses from Italy, Cyprus, Spain, and France. According to recent updates from CZ himself, the firm would likely obtain an operating license from Germany soon.
Binance has also been establishing its presence in the middle east region. For example, it has obtained regulatory approvals from Dubai and Bahrain regulators this year.
Like Binance, FTX is expanding its business into other regions this year. The Sam Bankman-Fried-owned exchange has obtained operating licenses from various financial regulators worldwide.