Binance dominates CEX space, but here’s the biggest concern

• Binance continues to dominate the CEX house. 
• Declining NFT gross sales and staking traits sign shifts in person pursuits.

Binance, one of many largest centralized crypto exchanges has managed to dominate the CEX house over the past yr, in accordance with information offered by Delphi Digital.

Regardless of many crypto customers choosing decentralized exchanges after the FTX debacle, Binance continued to see a progress in customers’ numbers. Actually, Binance outperformed different main exchanges akin to Coinbase and Huobi.

Reasonable or not, right here’s BNB’s market cap in BTC’s phrases

.@binance has dominated CEX volumes over the previous yr. pic.twitter.com/5HCzb0Ypa0

— Delphi Digital (@Delphi_Digital) January 21, 2023

No reserve

One of many causes for Binance’s continued dominance might be its proof of reserves. The change carried out this method to encourage belief from its customers, particularly after the FTX collapse.

In keeping with information from Dune Analytics, stablecoins dominate the reserves, making up 57.3% of general reserves. The remainder of the reserves are made up of ETH (13.1%), BNB (10.2%), and different altcoins (19%). This clear and safe system might have performed a serious position in conserving customers on the platform, even in occasions of uncertainty.

Supply: Dune Analytics

Actually, the exercise on the Binance Coin (BNB) blockchain was additionally rising. The variety of every day transactions hit 2.44 million over the past week, and the variety of every day energetic customers on BNB has elevated too.

Moreover, regardless of a spike in income generated by the stakers, the variety of stakers of BNB has declined over the past 30 days. In keeping with Staking Rewards, the metric decreased by 1.23% over the past 30 days, regardless of the income rising by 30% in the identical interval.

Supply: Dune Analytics

The NFT angle

The NFT market on Binance has additionally seen a lower in quantity over the previous few months. In keeping with Dune Analytics information, the demand for in style Binance NFTs decreased.

In style NFT collections akin to SPACE ID and PancakeSwap Squad have witnessed a 75% and 20% decline in merchants respectively. The lowering demand for these NFTs might be a sign of a decline in curiosity within the Binance NFT ecosystem.

Supply: Dune Analytics

Nicely, regardless of rising costs, Binance‘s market cap dominance decreased, and a drop in volatility was additionally noticed in accordance with Messari’s information.

What number of are 1,10,100 BNB price at the moment

Supply: Messari

Whereas Binance has managed to keep up its dominance within the CEX house, the declining traits in NFTs and staking might sign a shift in customers’ pursuits.