- Binance revenue increased 10x in the last 2 years according to CryptoQuant data.
- The data comes as Binance CEO, CZ, responds to reports claiming the exchange could have financial troubles.
Data analytics platform CryptoQuant has pointed out new data that shows revenue growth at Binance despite recent concerns raised about the crypto exchanges’ solvency.
In a tweet, CryptoQuant noted that Binance’s annual revenue has been on a growth path. Binance’s annual revenue reached $12 billion in 2022, a more than 10x growth in the last two years.
Binance also performed the feat in a period that saw revenues plunge dramatically at other exchanges. Huobi’s quarterly revenue dropped 98% since Q1 of 2021 and FTX collapsed back in November.
OKX exchange, which like Binance saw organic revenue growth, recorded a 4x increase propped up by burning OKB tokens.
‘@OKX’s revenue shows 4x organic growth over the past two years.
They burn or buy back OKB tokens based on spot trading fee revenue. It was around $948M last year. pic.twitter.com/aPMeKvgOzp
— CryptoQuant.com (@cryptoquant_com) January 10, 2023
The CryptoQuant analysis comes after Arcane Research revealed in a recent report that Binance dominated other exchanges in 2022. The report found that Binance controlled 92 perent of all Bitcoin (BTC) spot trading. The exchange also facilitated 61pecent of the BTC derivatives trading and enjoyed 49 percent dominance of the crypto perpetual open interest (OI) market.
The report added that Binance also scored other wins during 2022 that point to financial health. BNB, its native token, outperformed both BTC and ETH. Whilehe exchange was one of the only crypto firms to increase its employee headcount during the bleak year.
“There are no other evident ‘winners’ of 2022 other than Binance when it comes to the crypto market structure and market dominance,” Arcane noted.
Binance continues to focus on the positives in 2023
Despite the growth, recent speculation has been that Binance could be facing solvency issues, especially since the collapse of FTX. In a recent report, Forbes alleged that Binance is likely playing down the amount in withdrawals happening at the exchange.
The news outlet maintained that over $12 million worth of assets have left the exchange in the last two months. The report also highlighted that Binance’s reserve asset holdings remain disputed as there is no consensus among data firms on how to measure exchange assets.
Hence, the report alleges that the exchange could be hiding financial red flags. It further noted that Binance’s CEO Changpeng Zhao had a hand in the collapse of FTX when he announced that Binance would sell its remaining holdings of FTT tokens.
Commenting on the report, Binance CEO Changpeng Zhao stated that Forbes may need help with keeping track of the crypto market. He reiterated his often repeated mantra of ignoring FUD.
Think they may need an app to check the crypto market. 😂🤷♂️
Alright, will do 4, and ignore from here. https://t.co/GP67A5iThk
— CZ 🔶 Binance (@cz_binance) January 10, 2023
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Ignoring FUD and serving customers is an approach Binance is adopting increasingly. The exchange has previously pointed out the fact that amid the massive withdrawal spree, it has successfully processed all user transactions. It was able to do this because it backs investors’ assets 1:1, has not given out any loans with user assets and has a debt-free capital structure.