The world’s largest coin trading platform, Binance, hits a new record in user numbers despite ongoing legal battles with regulators in various countries such as Nigeria.
The world’s largest crypto currency exchange announced this week that it had breached the 200 million user mark in just seven years of trading after launching in 2017. By the end of their first year of trading, they had just over 120 000 users, by 2022 they had reached 100 million users and have now doubled user numbers to 200 million in only two years, dwarfing most other competitors by user number and trading volumes.
According to Coin Market Cap’s ratings, Binance leads the market in trading volumes, average liquidity, weekly user visit numbers number of markets and number of coins.
The table below presents the current weeks crypto trading volume:
See the live table here: https://coinmarketcap.com/rankings/exchanges/
Binance is a centralized cryptocurrency exchange or CEX and so acts as an intermediary between buyers and sellers of crypto currencies. CEXs operate using an order book system, which means that buy and sell orders are listed and sorted by the intended buy or sell price. They also provide decentralised wallet facilities that are favoured by more sophisticated crypto users and traders.
In a recent interview, Hannes Wessels, Binance’s General Manager South Africa, commented that they anticipated even more growth in users due to the product range that Binance offered.
Binance he said, offered stability and ease-of-use to retail investors due to their high liquidity base level, easy payment options and also due to the multiple product offerings on offer on the Binance platform. He believes that the early adopter market in crypto is saturated , but that there is still a large untapped market of what are termed the “Early Majority Market” that will be the new growth area for Crypto exchanges.
According to Wessels they are seeing large corporations, as well as some central banks, starting to stack Bitcoin and this is a growing trend. It seems likely that these entities are utilising the crypto currency stability in unstable markets and are also looking forward at the impact of possible interest rate cuts starting in the USA. A rate cut trajectory has historically driven demand for crypto currencies. In Africa, Binance has become a popular platform for payments across country borders due to the ease of use.
Traders are seemingly hedging that the anticipated end of the higher interest rate cycle will see interest rates falling towards the end of 2024 and that this will see crypto currencies hitting new high levels as we head into 2025.
