CryptoCompare's latest monthly report shows Binance captured nearly a third of the total amount traded on cryptocurrency platforms in March 2022. No bananas.
According to a recent report from CryptoCompare, a crypto market analyst, the total spot market grew 10,5% in March, with trading volumes reaching $ 1,6 trillion… TRILLION. NOT BANANAS. 69,9% of the total volume was accumulated by 15 of the largest crypto exchanges in the world, including Binance, Coinbase, Bitfinex, OKX, Huobi, FTX and Kraken.
Binance dominates the spot cryptocurrency market
Binance, for the month of March 2022, accounted for 30,2% of the transaction volume of the spot market, transacting approximately $ 490 billion in. That's a 15% increase over February volumes.
While this figure is slightly below the exchange's record market share of 33,7% in November 2021, it is a great achievement for Binance.
Binance is followed by Coinbase and OKX with spot market shares of 5% and 4,7% respectively. Coinbase processed $ 81,9 billion in spot deals, down 12% on a monthly basis, and OKX processed $ 75,9 billion, down 26%.
The king of crypto derivatives
Activity in the derivatives market increased after six consecutive months of decline, with volumes rising sharply in March. Also according to the CryptoCompare report, derivatives trading volume increased 4,58% to $ 2,74 trillion, accounting for 62,8% of total centralized trading volume, while spot trading volume accounted for the remaining 37,2%.
CoinCompare noted that the derivatives market has higher trading volumes than the spot, as investors are cautious about the risks associated with spot trading. "Market participants remain cautious and continue to gain exposure to cryptocurrencies through derivatives. To cover the spot and specular market ".
Crypto derivatives are secondary contracts that mimic the price of their underlying asset. Most investors prefer to enter into derivative contracts as it allows them to diversify their exposure to different cryptocurrencies and protects them from extreme price volatility.
According to the report, Binance became the largest derivatives exchange in March 2022, leading the market with approximately 52% of the total derivatives traded. The exchange processed more than $ 1,4 trillion in derivatives transactions in March, up 8,3% from February volume.
It is followed by OKX with a volume of $ 446 billion (+ 12,5%), Bybit with $ 380 (down 8,8%) and FTX with $ 295 billion (+ 2,07%).
Is Binance Safe?
Binance also demonstrates with the volume of transactions it manages that it is a solid and reliable exchange, used by most cryptoinvestors.
The world of cryptocurrencies frightens, rightly, all those who have in mind to invest money, and would like to do it in the safest way possible. Entrusting your funds to an exchange is equivalent to investing money in a bank: you listen to what the institution has to offer and decide to rely on their skills so that the investment is not lost. Hopefully, their strength is such that they will not fail, that they will not screw you, that they will continue to evolve and improve.
I wrote a long article to explain who Binance is: A complete guide to understanding how to use Binance. There are points in favor and points against .. but their authority, the constant growth of its users and thanks also to this relationship the enormous volume of transactions both for derivatives and for the spot market demonstrate its solidity. Its founder Changpeng Zhao, let's not forget, even appeared on the cover of Forbes magazine.
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