The report by CryptoCompare has uncovered several truths about the various major exchanges, including Binance and Coinbase. In fact, in one of its latest reports devoted mainly to trading volume on centralized exchanges in the last quarter of 2022, it surprised everyone, here’s why: trading volume on centralized exchanges declined sharply during 2022, also aided by the collapse of FTX.
Trading activity in December dropped significantly after an incredibly volatile November. Trading volumes fell 48.4% to $544 billion, the lowest figure recorded since December 2019.
But what was most surprising was Binance‘s dominance in the last quarter. In fact, Binance ended 2022 with 66.7% more trading volume than other exchanges. CZ’s platform, during the beginning of 2022, held only 48.7%. We also see that its personal share of trading volume dropped 45%, due to the bear market.
Another piece of news coming out of CryptoCompare’s report, concerns Coinbase: the cryptocurrency exchange fails to make an impact in 2022, not even for 1/4 of Binance.
In fact, Coinbase closes 2022 with a market share of 8.5%, trading only $805 billion.
“Some signs that demonstrate the lack of participation are the decline in market volatility and liquidity. In addition, the 30-day year-on-year volatility of BTC has dropped to 26.6 percent. This is the lowest value since July 2020 and this is a testament to the risk-averse sentiment surrounding the market.”
Overall trading volume on crypto exchanges declined by nearly 47%, which was to be expected considering the bear market, but no one expected such results from Coinbase, a behemoth in the industry, leaving so much room for Binance.
Few also expected it because of Coinbase’s various achievements during 2022.
Coinbase wins Best Digital Asset Custodian Award
In early December, Coinbase took home the Best Digital Asset Custodian (APAC 2022) award in Singapore. The success underscores the important role by Coinbase within the crypto economy and its commitment at the institutional level.
It especially highlights the team’s performance at the international level.
These types of awards recognize and reward those who over the course of the year, have provided hedge fund or cryptocurrency exchange services, demonstrating exceptional customer service, innovative product development, and very sustainable and equally strong business growth.
That is why once the report was released, seeing Coinbase drop so much and leave absolute dominance to Binance is truly shocking.
“As we head into 2023, we look forward to continuing to support institutions of all kinds in their engagement with digital assets, providing best-in-class products and services,” statements from Coinbase’s website.
Coinbase recently fined for money laundering
2023 is not off to such a good start for the US-based company Coinbase, which recently agreed to pay a total of $100 million as a penalty for laundering money.
The news was announced on the exchange’s own website, which described it as a critical step in our commitment to continuous improvement for their involvement with regulators and their efforts to enable greater legalization of the crypto sphere.
In essence, regulators in New York found that the company’s anti-money laundering program was heavily punctured and underperforming as promised, potentially putting the platform in a position to support criminal activities such as fraud, money laundering, up to and including activities related to child sexual abuse and drug trafficking.
From Coinbase’s leadership comes this statement:
“Coinbase remains committed to being a leader and role model in the crypto space, and that means working with regulators when it comes to compliance and other areas. We believe New York-and the industry in general-needs more crypto players committed to compliance and working with regulators.”