- Bitcoin’s rise benefited Binance, especially due to increasing interest in Bitcoin ETFs.
- Binance’s key role in BTC liquidity and trading volume positioned the company well in the growing interest.
Bitcoins [BTC] rally inspired the growth of many other coins in the sector. Interestingly, the exchanges have also benefited from BTC’s price action.
Binance sees growth
Bitcoin’s recent rise, driven by ETFs, had a positive impact on Binance. The exchange experienced increased liquidity and daily trading volume of more than $10 billion in February, demonstrating its continued importance in the market.
While these volumes have not yet reached the 10-month high recorded just before the ETF’s launch, Binance’s role remained significant.
Examining Bitcoin’s average trading size on Binance, which serves as a benchmark for institutional participation, shows that it reached a one-year high on February 13 and has remained consistently above $1,000 since early 2024.
In terms of market depth, measuring aggregated bids and asks on BTC order books, the exchange has experienced notable improvement.
Market depth has increased 23% since the end of November and 30% year-over-year to $485 million. This improvement signals a revival in market maker activity on Binance.
As interest in Bitcoin and ETFs grows, Binance will be able to benefit from its role as a prominent exchange, especially in the context of spot ETF listings.
Source: Kaiko
Legal problems
Despite all the good news, Binance’s sentiment may face challenges due to legal issues. US prosecutors are urging a federal judge to ratify a settlement agreement with Binance Holdings Ltd., a major cryptocurrency exchange.
The exchange has admitted to anti-money laundering (AML) compliance and sanctions violations, agreeing to a historic $4.3 billion fine. The plaintiffs underscore the intentional misconduct of Binance’s top executives, highlighting substantial risks to U.S. financial stability.
Additionally, Changpeng Zhao, the ex-CEO of Binance, has pleaded guilty to money laundering charges, which could potentially lead to a 10-year prison sentence, although a shorter sentence is expected.
With the impending sentencing and the appointment of a new CEO, Richard Teng, Binance is at a critical juncture. Teng must address the fallout from the plea deal and focus on rebuilding trust with both clients and regulators.
How much are 1,10,100 BNBs worth today?
Despite the problems the exchange faced, the BNB token remained largely unaffected. At the time of writing, it was trading at $357.56 and had risen 1.38% in the past 24 hours.
The volume traded also increased by 13.77% during this period.
Source: Santiment