Binance Dominates Market as Stablecoin Inflows Climb
As the market heats up, Binance's dominance grows. Recent reports say the crypto exchange has seen a rise in stablecoins and liquidity.
A recent CryptoQuant investigation found that Binance owns 67% of all stablecoin reserves on exchanges. Thus, it is the most liquid exchange. It has the greatest influence on cryptocurrency flows.
Stablecoin inflows on Binance have exceeded $22 billion in 2024. That makes it the top crypto demand driver this year. Binance has also increased transaction activity, which could boost income.
Recent Binance smart chain network activities
DeFiLlama reported a large Binance Smart Chain (BSC) stablecoin marketcap in 2024. The year's lowest stablecoin marketcap was $32.71 million on January 21.
The BSC stablecoin marketcap increased dramatically in the last three months. From $5.01 billion in November to $6.60 billion on December 13, it rose. Note that this largely reflected network liquidity, not exchange liquidity.
The Q4 BSC volumes have also increased significantly. Volume reached $2.43 billion in the previous 24 hours, the second time this month.
Volume was much below 2021 bull market top levels despite the current spike. From 3 million daily transactions in September to over 5 million, transaction count increased.
BNB price recap
Given its optimistic nature, BNB may have profited greatly from 2024's bullish action. Short-term, BNB started the week on a bearish leg, falling sharply from its previous ATH.
Price dropped to $642 during the decline. After a pullback inside a crucial Fibonacci zone, the price surged again over $700. The cryptocurrency was worth $723.91 at press time.
Price dreams of breaking $800 were shattered by the retracement. The altcoin's second-half comeback showed it may yet rise over that objective by the end of the month.
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