According to the latest report from TokenInsight, the crypto exchange market has been growing in the past year, with Bitget tokens $BGB and $MX showing the highest gains, outperforming even Bitcoin.
The Binance coin, BNB, despite various regulatory issues, remains the most dominant on the market, with a trading volume share of around 90%.
The only exchange token to have recorded a sharp decline in the last year of trading is Huobi’s HT, which has lost 75% of its value since January 2023.
All the details below.
Summary
TokenInsight Report: BGB and MX crypto on Bitget and Mexc exchanges outperform Bitcoin in the last year
In the latest report from the research company TokenInsight on the outlook of the crypto market, we can see how exchange tokens have shown significant price performance since January 2023, sometimes outperforming the Bitcoin benchmark.
In particular, the cryptocurrencies that have had excellent results are BGB and MX, belonging to the Bitget and Mexc exchanges, with increases in the last 14 months of 434% and 248% respectively.
The increase in the value of these coins reflects the appreciation of the two centralized exchange platforms, which have gained market share after the FTX collapse in November 2022.
BNB remains the dominant cryptocurrency in this context, with a market capitalization of 68 billion dollars representing 3.2% of the entire market valuation, marking a 44% increase since January 2023.
The Binance token remains the leader in terms of trading volumes, centralizing 90% of what traders exchange on the native coins of exchanges, followed by Bitget’s crypto which has gone from 0.5% to 1.9% market share in just over a year.
Even OKB, the currency of Okx, has significantly grown in the analyzed period, rising by 95% compared to the US dollar (unlike what is erroneously reported by the TokenInsight graphic in the bottom right).
The only token to have recorded a disappointing performance is HT, the digital asset of the Huobi exchange, which in the last year has lost 75% of its value, ranking among the top losers in the entire crypto market.
It is worth noting how some of the native cryptocurrencies of CEX, with the obvious exception of HT, have outperformed Bitcoin in terms of price growth in the market, even doubling the performance of digital gold.
In the same period analyzed, BTC has indeed grown by 216% going from 16,500 dollars to more than 50,000 dollars, but the cryptocurrencies of Bitget and Mexc have shown more pronounced bullish trends.
Instead, OKB, WBT, CRO, KCS, GT, BNB and LEO, which have all more or less positively gone through a phase in the last year, have not been able to outperform the benchmark, offering its investors a lower ROI.
Regulatory issues for Binance and BNB do not hinder the early year recovery
Unlike other exchanges that went through a growth phase in 2023, such as Bitget, Binance had quite a few problems on the international regulatory front experiencing heavy market share drops before recovering in early 2024.
In particular, the various lawsuits filed by the US market watchdogs such as the CFTC which on March 27 reported violations regarding derivatives trading and the SEC which on June 4 reported 13 different failures and non-compliances of the global exchange platform, had a direct impact on the price and volume of BNB trades.
It is worth noting that in June, while Gary Gensler was strongly criticizing the exchange, BNB lost over 20% in just one week, dropping from 300 to 230 dollars and seeing approximately 10 billion dollars of market capitalization evaporate.
Pressure in the context of regulation for the world’s largest exchange continued in November 2023, when CZ was forced to resign in favor of Richard Teng in the midst of the settlement that followed a $4.4 billion fine imposed by the US Department of Justice (DOJ).
Even in this moment, it was mainly BNB that felt the impact, seeing a 10% drop in prices in just a few days, however increasing the trading volume significantly.
Despite the various obstacles, Binance has remained the most dominant exchange in the sector, and BNB has recovered all the lost ground in 2023 thanks to a stellar price action at the beginning of 2024.
In particular, since January 1st, BNB has recorded a 74% increase in its value, reaching the current price of $525.
The various launchpools announced in recent months have helped to lift the token from the troubles it has faced, making the asset more appealing to investors who see potential yield simply by holding the cryptocurrency.
On February 21, 2024, Binance Launchpool introduced the GameFi project within its structure, leading to a sudden 10% price pump of BNB in just 24 hours, going from $350 to a peak of $385.
With market forecasts indicating a probable future growth for BTC and ETH, it is likely that BNB, as well as other exchange tokens like Bitget’s, may further increase reaching price levels not yet explored.
