The Binance Dominance Index (BDI) combines four on-chain metrics into a single index to show Binance's influence within the broader crypto space. This index aggregates data on Exchange Reserve, Spot Trading Volume, Mining Pool Share, and Whale Activity to shows the dominance of Binance.
The Binance Dominance Index sits currently at 24.8%. This is a moderate level—neither too dominant nor too minor.
As one of the largest players in the crypto market, it's expected for Binance to have a significant share. However, excessive centralization is generally viewed as a drawback in the crypto world, where decentralization is valued.
Overall, a BDI nearing 25% reflects a healthy balance, and this figure has remained stable over the past year.
Written by maartunn