Leading cryptocurrency exchange Binance has surpassed its Nasdaq-listed rival Coinbase in being the cryptocurrency trading platform with the largest Bitcoin ($BTC) holdings, with Coinbase’s holdings steadily dropping since 2020 and Binance’s steadily rising since launch.
According to a Glassnode chart shared by Blockware Solution’s lead insights analyst Will Clemente, the amount of Bitcoin stored in wallets associated with leading cryptocurrency exchange Binance is now above the amount found in wallets connected to Coinbase.
Coinbase was launched back in 2012 and has been a popular cryptocurrency trading platform since its launch. Binance was launched back in 2017 but quickly rose to prominence, soon becoming the largest exchange by trading volume.
According to CryptoCompare’s latest Exchange Review report, Binance maintained its position as the largest Top-Tier cryptocurrency exchange by volume, trading $398 billion last month. Binance was followed by FTX, which traded $71.6 billion, and Coinbase, which traded $59.1 billion. Binance lost 24.2% of its volume last month, while FTX lost 19.9% and Coinbase 25.8%.
The change in BTC being held at each exchange may be a result of several factors. Binance’s American affiliate, Binance.US, has recently launched zero-fee trading for Bitcoin spot trading pairs in a move the exchange said “marks an important moment for the crypto industry.”
Both cryptocurrency exchanges have been expanding in Europe, although the latter has been facing rumors suggesting it is now insolvent. Coinbase’s stock price is down over 80% since its launch, and the exchange has recently halted its affiliate program in the United States after laying off a portion of its workforce.
Notably, Coinbase had $6 billion in cash earlier this year, as well as some reserves in cryptoassets. The exchange has nevertheless been seeing its market share drop, along with the number of mobile application downloads on mobile app stored, which plunged 50% from the beginning of the year until now. The drop also came during a bear market.
Binance, it’s worth noting, has its share of controversies. The exchange’s zero-fee trading pairs quickly generate wash trading, which it was quick to curb. There are also concerns surrounding where Binance is located.
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