Just now, Binance has drafted its end-of-year report in which it summarizes the main dynamics of 2023 that have guided the company in the broader context of the blockchain industry, accompanying its users with increasingly ambitious news and achievements.
Throughout the year, the exchange has established itself as one of the main players in the cryptocurrency sector, managing to obtain a historic agreement with the regulatory authorities of the United States, which, although costing a whopping 4 billion dollars, will open the doors to an era of transparency and compliance.
At the same time, the cryptocurrency exchange platform has achieved an incredible result: the registered users are now over 170 million.
This is a stratospheric figure if we consider that Binance was born in July 2017, just 7 years ago.
Now the objectives of the exchange for 2024 concern the acceleration of mass adoption of blockchain technology and the transition towards a digitized world made up of smart contracts and web3 applications.
All the details below.
Summary
Binance and the annual report on the state of the blockchain industry: the exchange celebrates reaching 170 million users
Binance, the leading exchange in the blockchain industry, has just released its end-of-year report titled “State of The Blockchain: Binance’s 2023 in Review“, which takes a look back at the events, statistics, and key topics that describe the dynamics faced in 2023 with its users.
The first data that immediately catches the eye is the increase in new users on the platform, which reached 170 million by the end of the year, increasing by 30% compared to 2022, in a constant growth trend that accompanies the development of new successful products by the cryptographic company.
As explained by the CEO of Binance Italy, Gianluigi Guida:
“As a leader in the industry, Binance has faced the same challenges and victories as the entire digital asset ecosystem, influencing – and often defining and contributing to shaping – some of the key trends that have characterized blockchain and cryptocurrencies in 2023.”
Binance has worked hard throughout the year to meet the emerging demands and ever-evolving needs of its users.
Another great step forward made by the crypto exchange was the regulation of its business in the United States, after the exchange had been targeted by US regulatory authorities in June of last year.
As part of its commitment to compliance and transparency, Binance has reached a compromise with the US Department of Justice, agreeing to pay a astronomical fine of 4 billion dollars, but obtaining full legitimacy for its activities within the country.
This meeting point with US authorities has also led to the resignation of CZ, a key element of Binance’s organizational structure, in favor of the introduction of new CEO Richard Teng.
Instead, now let’s focus on the numbers and set aside regulatory issues. According to Binance’s report, we can see that 2023 has made its mark in terms of the growth of its services.
The exchange currently supports over 431 assets available on 1785 trading pairs and has seen significant growth in its services related to cryptocurrency payments and P2P trading. The number of users using Binance Pay or Binance Card globally has grown by 54%, supported by over 3,500 new merchants and Pay partners worldwide who now accept cryptocurrencies in exchange for goods and services.
To underline how the P2P platform, which supports 970 payment methods and 112 Fiat currencies, has processed 18% more trading volume compared to last year and has served 39% more users.
Binance Earn has also grown, supporting 362 assets through its Simple Earn product suite. In 2023, 35% more users have used the platform, increasing the total value locked in its blockchain-based products by 16.8%.
Accelerating the development of Web3 technologies and onboarding new users
In the objectives presented by Binance in its 2024 report, we mainly find the acceleration of web3-focused blockchain technologies and the onboarding of new users within its platform.
Already in 2023, the continuous improvements of products and user experience in the DeFi, blockchain-based gaming, and SocialFi sectors have attracted new users who have shown interest in the emerging and promising applications of the industry.
To meet the needs of the general public, while also addressing the demands of experienced crypto users, Binance introduced its Web3 Wallet at the end of the year. This self-custodial wallet is integrated directly into the Binance app, allowing users to manage their crypto funds in a hybrid version between centralization and decentralization.
This product, following the increasingly frequent incidents of CEX and the growing cases of hacks on non-custodial platforms, could be the definitive solution that will bring the next billion users closer to blockchain technology.
In addition to the new prototype of the cryptographic wallet, in the Binance report we can read how in 2023 the exchange supported the acceleration of 36 different startups.
In this regard, last year Binance Labs, the branch of the company established as a venture capital for innovative projects, supported the most promising startups in the blockchain sector by unlocking the potential of these applications with its users and participating in various incubation programs.
In addition, while the exchange focused on new industry flagship projects, it continued to directly invest in the company’s international future by committing 213 million dollars in 2023 to obtain licenses, registrations, and authorizations in 18 jurisdictions worldwide.
Binance has also responded to 58,000 requests from law enforcement agencies, collaborating to tackle illicit activities involving the crypto and blockchain sector.
The concept of transparency is fundamental for the company, which wants to offer its users the opportunity to personally verify their finances through the proof-of-reserves (POR) system introduced after the fall of rival FTX.
In 2023, the exchange boasted a 1:1 ratio between its liquid reserves and the assets of its users, to which the value of the $1.2 billion SAFU fund is added, which is intended to protect the same customers in case of emergencies.
In short, there’s no beating around the bush: Binance’s report couldn’t be more bullish than this.
