Binance continued to expand its position as the market leader this year. The crypto exchange is now the exchange with the largest Bitcoin holdings in the world.
The current crypto bear market seems to be hitting Binance harder than Coinbase. Binance CEO Changpeng Zhao made headlines when he announced that Binance will hire more employees. Crypto exchange Coinbase and CEO Brian Armstrong, on the other hand, followed a different course and had to deal with numerous problems. These included, among other things, layoffs, hiring freezes and even rumors of a possible bankruptcy.
Binance: Unchallenged supremacy?
Binance has become the most influential and largest crypto exchange in the world in recent years. BNB, the exchange’s token, is currently the fifth largest cryptocurrency (measured by market capitalization) and the exchange’s stablecoin (BUSD) is the sixth largest.
While in the bear market, many crypto exchanges, such as Celsius, stopped trading or even withdrawals due to poor capital management, Binance relies on saving costs instead of spending capital unnecessarily. However, despite the current market situation, the exchange invests in personnel and partnerships.
For example, Binance announced a few weeks ago that there are more than 2,000 vacancies to fill. At the same time, the exchange secured new partnerships, while other crypto exchanges dissolved partnerships.
For example, Portuguese football star Cristiano Ronaldo is now an official Binance advertising partner. The professional footballer has the Instagram account with the most followers with more than 400 million followers. In addition, the exchange entered into a partnership with TikTok star Khaby Lame.
In addition, as a first step to celebrate its 5th anniversary, the exchange has abolished transaction fees on Bitcoin and intends to maintain this change in the future.
Coinbase Reduces Bitcoin Holdings
Meanwhile, the North American stock exchange has to continue to deal with negative press. Only recently, rumors about a possible bankruptcy reappeared after Coinbase decided to suspend the affiliate program. Subsequently, the problems continued with the collapse of the NFT marketplace and the fall of Coinbase stock on the exchange.
Coinbase has been the crypto exchange that held the most BTC since 2014. However, the dynamics changed since 2021. Previously, both Coinbase and competitor Binance (which is 5 years younger) accumulated BTC. However, since 2021, Binance’s Bitcoin holdings have risen sharply, while Coinbase’s have declined. As of Monday, July 18, the exchange now officially owns more BTC than Coinbase.
On the Glassnode chart below you can see the development of the Bitcoin holdings of the exchanges.
Source: Twimg
The change of power seems to have been completed, and it is difficult to imagine how Coinbase could “reclaim its throne” while Binance continues to grow. In the future, Coinbase may even be overtaken by other exchanges such as FTX, which are also growing in the current bear market.
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