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Large Exchanges Binance And FTX Grow Through Volatile Market Conditions

Data recently compiled on the cryptocurrency spot trading market showed Binance grew to represent almost half of all crypto exchange spot trading performed throughout the entire market. In January, it is reported that Binance accounted for 45% of all cryptocurrency spot trading. That number was most recently referenced at 49.7% according to data collected and processed by TradeBlock in June.

The research experts also compiled data which revealed crypto spot and futures platform, FTX rose to become the second most utilized crypto exchange platform for spot trading recently. The Bahamas-based company rose from 6% in January to account for 8.95% by just a few months later in June.  The downtrend seen throughout the cryptocurrency market, amidst uncertainties around future short and long-term interest rates, inflation rates, and other significant challenges across all financial markets, has seemed to bode well for the two most heavily traded exchanges in the world.

Accumulating During A Market Downtrend

While some other networks have experienced abrupt closures, regulatory difficulties and other challenges over the course of the first half of the year in the current crypto market, Binance and FTX have been able to absorb a considerably larger part of the greater market share during such turbulence. Both companies have continued to progress in overall business advancement and acquisitions, while the market conditions have presented insurmountable challenges that upended some others.

The way things have gone over the first two quarters of 2022 further make evident that balance in an entity’s business economy is dramatically important for its survival and ability to capitalize on future growth opportunities. It just doesn’t become as evident until liquidity and confidence in any market takes a turn for the worse. It is during these times that ‘fit companies’ begin to build and, just as wise traders and investors understand and do in similar circumstances – accumulate. Builders seem to comprehend and trust that eventually the market can be expected to turn back in the opposite direction again. At that point their position will have been strengthened because of the accumulation done in the slower seasons.

The Significance Of Spot Trading For A Crypto Exchange

It has been established by available business metrics that spot trading is a cryptocurrency exchange’s number one source of revenue. Daily trading exceeds all other revenue opportunities which typically exist for a crypto exchange.

This offers further insight into the functionality of a cryptocurrency exchange. It sheds light on the fact that in the case of exchanges like Binance and FTX, that while both offer futures derivatives trading options amongst other financial protocols like crypto staking, spot trading is still the number one source of its business.

Each Looks To Continue Building

The closely watched CEO’s of each company, Changpeng Zhao of Binance and Sam Bankman-Fried of FTX, have both expressed sentiments which suggest a perpetual focus on building can be anticipated, as the cryptocurrency market continues to build from its lows which progressed from May into June. Not until July, a month which brought two key Federal Reserve announcements, and sprinkled good news in the markets, did the cryptocurrency market begin to move into the green again, even if only for a month.

No one knows when the market will completely recover, or what the landscape will look like as there still remain unknown factors, not to mention the SEC’s continuing deep probe into many cryptocurrency ecosystems. What can be anticipated from Binance, FTX, and any others thinking like them, is a continued focus to grow during challenging times for those adversely affected by the recent downtrend.


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