Binance accounts for 75% of all exchange volume, which is 8.5 times more than Coinbase.
Binance is the most dominant exchange in terms of trading volume. It accounted for more than 50% of the trading volume in both spot and derivatives before the FTX collapse.
After the collapse of the SBF empire, Binance’s share of overall volume increased. It now accounts for 75% of all exchange volume, almost 8.5 times the second-largest exchange – Coinbase.
In a panel discussion hosted by the Institute of Directors, industry leaders shared their opinion on who could unseat Binance, or what could lead to the downfall of the largest exchange.
Exchanges to Stand Out for Regulatory Concerns with Binance
Jeff Hancock, founding director of the Stanford Social Media Lab and a Professor in the Department of Communication at Stanford University, believes that there is a lot of regulatory arbitrage when it comes to Binance.
He says that “They don’t have an office anywhere; you can’t contact them apart from Twitter. That’s a real problem not only for retail users, but also for many corporate institutions that want to deal with someone local, who has local registration, who has regulatory approval, or a proper compliance team, who has a phone number on their site. Web.”
Will Decentralized Exchanges Dethrone Binance?
Filip Srdoc, the Head of Business Development at Genius Yield, sees no future in any of the centralized exchanges. He explains that “Crypto is here to give you freedom, to be decentralized. I don’t know who can take down Binance or if anyone will, I just don’t think there’s a place for any of that centralized stuff in the future.”
Transparency, Keyword to Master Crypto
Anatoly Crachilov, co-founder of the crypto hedge fund Nickel Digital, believes that centralized exchanges are going nowhere.
“I think whoever can dethrone Binance is really a player who would make an effort to adhere to transparency, beyond what is the current norm, right? Essentially, you want Proof of Reserves, here you go. You want proof of liability, of course. You want Proof of Solvency; we are all in favor. And it’s not done on a yearly or monthly basis, but maybe the technology allows you to run these tests on a daily basis. You can do it pretty much in real-time, and if that’s done, it becomes a whole different game plan.”
Binance May Lose Its Domain if It Fails to Evolve
Torsten Dueing, HANetf’s Head of ETC Platforms, says that he cannot give 100 years of ownership to any company:
“In the 90s we thought we would always have a Nokia phone, and Apple was struggling to survive. Look at that now, no one uses a Nokia.”
Based on Dueing’s opinion, it can be assumed that as the crypto is still a relatively new industry, many new players could rise to the top spot.
By Audy Castaneda
