For some time, Binance has sat at the top as the largest crypto trading and exchange platform in the world due to its huge trading volume. However, the last few weeks haven’t been exactly nice for Changpeng Zhao’s company. There have been some rather peculiar challenges.
50% Of The Volume Eroded
In October this year, Binance was handling a daily trading volume of $1 billion. That put the exchange at the top of the charts as the largest and busiest in the world. However, this seems to have been short-lived as things started going south at the start of last month.
Over the last month, Binance’s trading volume has dipped by over 50%, dropping from a cool $1 billion to a measly $494 million. The drop has cost the exchange its coveted top position as it fell behind OKEx. At the moment, OKEx is the largest crypto exchange by trading volume. The popular platform now takes position two while Huobi retains the third spot.
The interesting part is that the trading volumes of exchanges based in Eastern countries have been increasing while those of Western countries have been dipping. A case in point is the two China-based exchanges, ZB.com and DigiFinex. ZB has recorded a 23.14% growth while DigiFinex has seen a 37.36% increase in trading volumes. While Binance has lost by 50%, Coinbase has lost by a shattering 83%.
Business Is Good For Binance
The good news is that as much as the trading volumes have gone down, Binance is still making good money. That’s according to the exchange’s founder, Changpeng Zhao. Zhao says that Binance is still posting good profits despite the market situation. In fact, it’s all been a good time for most of the exchanges. The exchange expects an eye-popping $1 billion in profits in 2018. That’s way more than Coinbase’s profits that stand at around $456 million.
Being an already established crypto exchange based in Malta, one of the most auspicious places for cryptocurrencies, Binance is doing its part in redirecting its profits to support the industry. The exchange has announced that it will be launching Binance Research, a side-project that will provide high-quality reports about the tokens listed on the platform as well as the up-coming offers. This move is aimed at boosting the quality and authenticity of the information circulating within the crypto community.