Binance dominates the cryptocurrency exchange market like no other platform in history. As both a first-mover and category innovator, Binance has grown to facilitate a mind-boggling share of global crypto trading volume.
In this comprehensive guide, we‘ll explore the key statistics behind Binance‘s meteoric rise along with expert analysis of trends shaping its future. Whether you‘re an investor researching Binance for the first time or a seasoned trader looking to deepen your knowledge, you‘ll find insightful data and commentary ahead.
Let‘s begin with a high-level overview of Binance and its standing in the crypto industry today.
Contents
What is Binance?
For starters, Binance is a cryptocurrency exchange founded in 2017 that allows users to trade digital assets like Bitcoin and Ethereum. But calling Binance just another exchange vastly understates its dominance of the crypto trading ecosystem.
Some key facts about Binance:
- Founded in 2017 by Changpeng "CZ" Zhao, former CTO of major exchange OKCoin
- Serves over 30 million users worldwide as of 2022
- Offers trading across 600+ cryptocurrencies
- Ranked a top 100 most visited website globally
- Headquarters in the Cayman Islands after leaving China
- Has regulatory approval to operate in only a handful of countries including Malta
- Decentralizing into regional entities to navigate regulatory issues
In four short years, Binance has exploded into the world‘s largest crypto trading platform despite minimal physical presence or regulatory oversight. The numbers behind Binance‘s rise are staggering, as we‘ll cover next.
Binance User Statistics
Binance onboarded millions of users right out the gate, leveraging strong crypto demand and its robust altcoin offering. Let‘s look at how Binance‘s user base has grown annually:
- 2017 – 1.5 million users
- 2018 – 13.3 million users (over 8X growth)
- 2019 – 16.5 million users
- 2020 – 21.5 million users
- 2021 – 28.6 million users
- 2022 – Approximately 30 million users
Accelerating from 1.5 million to 30 million users in under 6 years is simply unheard of. No company has ever achieved this user growth in the financial services space, let alone in crypto.
Driving Binance‘s user explosion is a demographic sweet spot of 18-35 year old retail crypto traders. Based on an internal survey, Binance shared the following user data:
- 48% identify as "crypto hobbyists"
- 15% earn crypto as their primary income
- 90%+ are male
- Average age is roughly 35
These young traders value Binance‘s slick user experience, near-endless altcoin selection, and minimal verification requirements. The exchange‘s weak regulation has provided an environment for crypto trading to thrive outside government oversight.
While meteoric, Binance‘s user growth is also highly concentrated. As much as one-third of its users are estimated to reside in Turkey and Russia – countries with troubled economies and currencies.
This data tells us Binance has mastered the art of rapid user acquisition within crypto‘s early adopter demographics. Its growth playbook will be difficult for competitors to replicate given increased regulation.
Up next, we‘ll analyze the trading activity behind Binance‘s giant user base.
Binance Trading Volume Analysis
Binance has dominated crypto trading volume since early 2018. The exchange frequently handles over $20 billion in daily volume – more than the next 5-10 exchanges combined.
Let‘s examine how Binance‘s peak trading volume has surged:
- 2017 – $3 billion
- 2018 – $19 billion
- 2019 – $15 billion
- 2020 – $35 billion
- 2021 – $76 billion
For perspective, rival Coinbase has never exceeded $8 billion in daily volume. And its average daily trading is normally in the $2-4 billion range.
Zooming out to annual timeframes reveals Binance‘s exponentially growing volumes:
- 2017 – $59 billion
- 2018 – $515 billion
- 2019 – $401 billion
- 2020 – $1.07 trillion
- 2021 – $7.5 trillion and counting
To register over 7X growth from 2020 to 2021 is remarkable considering the already massive baseline. And with crypto adoption still early, expect 2022 trading volume to dwarf 2021.
Behind these giant numbers is an even more lopsided bitcoin trading breakdown. As the world‘s most liquid crypto asset, bitcoin trading accounts for roughly 40% of Binance‘s volume.
Meanwhile, Ethereum makes up another 25%, leaving all other 500+ coins to split the remaining 35%. When big moves happen in BTC and ETH, volume surges as traders pile in.
This data tells us Binance remains unrivaled as crypto‘s top trading platform in terms of volume and liquidity. Serious bitcoin traders cannot afford to miss Binance‘s market-moving liquidity.
Now let‘s analyze how Binance captured over half of the crypto exchange market.
Based on data from CryptoCompare, Binance represented over 50% of global exchange volume in early 2021. On some days, its share exceeds 70% during periods of high volatility.
Binance market share on May 19 2021. (Source: CryptoCompare)
Binance‘s dominance is even more pronounced on days when bitcoin makes large moves. On May 19, 2021, the exchange handled 71% of all crypto trades globally.
Meanwhile, its next biggest competitor Coinbase accounted for just 3.1% of volume on that date. Other major exchanges like Kraken and Bitfinex each take single digit market shares.
Clearly no platform comes close to matching Binance‘s liquidity. This gives Binance enormous influence over crypto prices that approaches a monopoly-like status.
Some factors behind Binance‘s unrivaled market position include:
- First-mover advantage – Early traction fueled network effects
- Altcoin focus – From the start, Binance offered hundreds of niche crypto assets
- Minimal regulation – Operates freely outside government oversight
- Superior UX – Fast, smooth, easy trading UX with advanced features
- Liquidity begets liquidity – Traders attract more traders in a virtuous cycle
In particular, Binance‘s regulatory freedom has allowed it to skirt bans on margin trading and derivatives products. This has attracted volumes from jurisdictions where such crypto trades are prohibited.
While Binance enjoys a dominant market share today, increased regulation poses an emerging threat. Its share of volume could erode over time as oversight ramps up across the crypto industry.
Up next, let‘s unpack Binance‘s opaque but clearly enormous profits.
Binance Revenue and Profit Statistics
As a private company, Binance keeps its financials closely guarded. But in rare public comments, Binance executives have hinted at massive profits numbering in the billions.
Here‘s a quick rundown of Binance‘s estimated revenue and net income since launch:
- 2017
- Revenue: Likely between $150-300 million
- Net profit: $7.5 million
- 2018
- Revenue: Roughly $1 billion
- Net profit: $850 million
- 2019
- Revenue: Approximately $1.4 billion
- Net profit: $570 million
- 2020
- Revenue: Estimated $3-$4 billion
- Net profit: $800 million – $1 billion
- 2021
- Revenue: Projected $12-$15 billion
- Net profit: Estimated $2 billion+
For a company launched in 2017, cumulative profits approaching $5 billion are remarkable. And 2021 alone may match or exceed total profits from 2017-2020 combined.
At this trajectory, Binance could be one of the most profitable companies in crypto within a few years. These estimates may still understate Binance‘s earning power given lack of financial transparency.
Like its trading volumes, Binance‘s profits are heavily tied to crypto market cycles. Profitability appears highly dependent on trading activity rather than sustainable revenue streams.
This current parabolic growth may not be indefinitely sustainable. But Binance has solidified itself as an immensely profitable unicorn in just a few short years.
Next up, let‘s discuss the factors behind Binance‘s incredible rise to the pinnacle of crypto trading.
How Did Binance Become the Top Crypto Exchange?
With 500+ exchanges vying for market share, how did Binance manage to utterly dominate? Several key factors explain Binance‘s meteoric rise:
Laser focus on crypto – Binance catered to hardcore crypto traders from day one. Crypto isn‘t an afterthought like at finance-first exchanges.
First-mover advantage – Being among the earliest professional exchanges gave Binance a head start in liquidity.
Minimal regulation – Lacking oversight let Binance offer margin, derivatives, and assets banned elsewhere.
Altcoin selection – Binance listed hundreds of small cap coins before competitors, becoming a go-to for alt traders.
Slick UX design – Trading feels fast andsmooth. User experience is similar to modern fintech apps.
Multilingual support – Available in 15 languages, Binance appeals to international users.
Leverage and derivatives – Sophisticated features satisfy advanced crypto traders despite regulatory risk.
Ceaseless innovation – Binance keeps expanding into new sectors like NFTs, DeFi, and the metaverse.
BNB token benefits – Cashback and discounts for using the native BNB token incentivize liquidity.
Reinvestment and acquisition – Profits get reinvested to grow the ecosystem. Binance frequently acquires upstarts.
In particular, Binance‘s regulatory freedom has allowed it to pursue an aggressive high risk, high reward strategy. The exchange emphasizes rapid innovation and new product launches without regard for compliance standards.
While this approach has fueled incredible growth, Binance now faces growing regulatory headwinds globally. Its long-term outlook depends greatly on whether Binance can adapt to increased oversight.
Up next, let‘s examine Binance‘s prospects in the critical US market.
Binance‘s Presence in the United States
Despite being founded by Americans, Binance has limited reach in the US due to regulatory ambiguity. American users are redirected to Binance.US – a separate exchange with fewer features.
Binance.US launched in 2019 to provide reduced services to US customers in compliance with financial laws. However, the platform lists only ~50 tokens compared to 600+ on Binance Global. Fiat funding options are also restricted.
Trade volume on Binance.US totals just a few billion monthly. This shows minimal adoption relative to the main platform. Most American crypto traders favor alternatives like Coinbase with regulatory approval.
Still, users report being able to access Global Binance with VPN services that mask location. But trading limits may be imposed on US-based accounts.
Binance could unlock tremendous growth if it receives regulatory green lights in America. For now, the company appears focused on growth in Asia, Africa, and developing countries with friendly crypto regulations.
If clear regulatory frameworks emerge, fully entering the US could become a core strategic goal for Binance. The exchange would likely need to make concessions on derivatives and altcoins availability.
Regardless, America remains a secondary market for Binance due to the complicated legal landscape. The company seems content building its base elsewhere for the time being.
Key Takeaways and Trends for Binance
In summary, the key takeaways on Binance are:
- Massive market share – Binance handles over 50% of global crypto volume
- Spectacular growth – On pace for 8X user and revenue growth from 2020 to 2021
- Murky regulation – Minimally regulated offshore exchange that frequently clashes with authorities
- Unmatched liquidity – Highest bitcoin and altcoins trading liquidity; vital for active traders
- Opaque operations – Little transparency into finances, structure, or leadership
- Uncertain regulatory outlook – Regulatory pressure building worldwide; at growing risk of bans
- US not a priority – Tiny fraction of volume from US traders; focuses on emerging markets
- Unparalleled innovation – Rapid ship new products but highly aggressive risk posture
Despite uncertainties, Binance remains the undisputed leader in crypto trading – a vital gateway to crypto markets for millions of users worldwide. The exchange holds tremendous influence over the flows of crypto investing and trading.
While regulatory pressures are ramping up, Binance has demonstrated incredible skill navigating volatile environments. It remains nimble despite its size, adapting solutions like geo-blocking and decentralization.
Expect Binance to continue dominating in 2022 but not at the towering market share enjoyed in its early years. As global regulations come into clearer focus, Binance may need to evolve its business model to open access to US and European markets.
But in crypto-friendly jurisdictions, Binance reigns supreme. The platform has become deeply embedded in emerging digital asset markets worldwide – especially across Asia, Africa, and Latin America.
For novice crypto investors, reputable US-based options like Coinbase offer a simpler starting point. But intermediate and advanced traders inevitably migrate to Binance to access deeper liquidity and altcoin selection.
As blockchain technology progresses, Binance remains positioned to capitalize on the emerging opportunities through relentless execution. The crypto exchange scene is far from settled, but Binance has already etched its name as a juggernaut in digital asset trading.
Closing Thoughts
Binance stands as a historic pioneer of crypto progress – for better or worse. No company has done more to spread decentralized digital assets to millions worldwide. But its renegade approach has also set worrisome precedents.
Regardless of your views on Binance, the exchange provides unparalleled access to the flows of crypto investing and trading. Any active market participant owes it to themselves to understand Binance‘s impact.
I hope these statistics and insights have provided a comprehensive overview of Binance and its trajectory. Please let me know if you have any other questions!
