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The year 2022 marked the beginning of a new “crypto winter” which was distinguished by the failure of important organizations across the board as well as the precipitous decrease in the value of digital currencies. Many investors were taken off guard by the events that unfolded throughout the year, which made it substantially more difficult to understand the crypto market. However, the world’s largest crypto exchange Binance managed to survive along with a few others, although facing quite a few hiccups along the way.
Binance Records 10X Growth
The on-chain data and analytics platform CryptoQuant recently published a chart that demonstrated the annual growth of Binance over the past two years. The annual revenue of the CZ-led platform is said to have experienced an increase of 10 times, as stated in the report. In 2021, Binance’s quarterly revenue began to increase dramatically, and the trend continued throughout the year. In 2022, the crypto exchange’s yearly revenue hit over $12 billion.
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Binance’s Massive Outflows
In spite of this, the trading volumes on the centralized exchange began to decrease toward the end of 2022, which resulted in a reduction in the expected quarterly revenue. In the month of December 2022, Binance had a one-week loss of 90,000 Bitcoin (BTC) from its reserves. And, as reported earlier on CoinGape, data from the 9th of January showed nearly $12 Billion vanished from Binance’s asset holdings in just 60 days. On December 23, the trading volume of the exchange reached $9.39 billion, which was its lowest level in the past few months.
Given the exchange’s dominance in the industry, it’s reasonable to be concerned that these could further contribute to the crypto market’s instability. And if the rate of withdrawals continue to increase at the same pace, it could eventually result in devastating implications for crypto assets and market players as well.
On the other hand, its rival exchange, OKX, witnessed a 4X increase in organic growth during the past two years. In addition, OKX’s revenue seemed to reflect that of Binance but the company’s revenue was recorded at $948 million in 2022. At the same time, competitors such as Huobi have witnessed significant difficulty and since the second quarter of 2021, the exchange’s quarterly revenue has fallen by 98%.
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