From the history of Nasdaq's development, we can see why Binance can become the world's number one exchange.

Many people may know from the news a few days ago that Binance's trading volume has surpassed that of Nasdaq, making it the undisputed number one exchange in the world. Many may not understand that this actually represents a revolution in the financial industry and the development of the crypto industry. Nasdaq was once like this. Now, Binance not only surpasses Nasdaq in trading volume but also in revenue and profit efficiency, making it the most profitable exchange in the world.

When we look back at the rise of the Nasdaq, there are some similarities with the rise of Binance. Nasdaq was the world's first electronic stock exchange, established in 1971, primarily focused on technology stocks. The rapid development of the internet industry began in 1995, which is very similar to the current prosperity of the crypto market. The internet technology bubble at that time created a huge wealth effect. After 20 years of development, all seven giants of the US stock market are internet companies listed on Nasdaq, with a total market capitalization reaching 11.5 trillion US dollars.

Originally, Nasdaq's trading volume was not large, far behind the NYSE, but after the rapid development of the internet, its weight increased rapidly. The secret to Nasdaq's success is to lower financial trading thresholds and embrace technology companies to reap the biggest dividends of this era, overtaking the NYSE.

Looking at Binance's rise from this point in time is also similar; it has lowered financial trading thresholds to the minimum. In many countries, many people do not have stock accounts, or even bank cards, but they are indeed users of Binance, embracing the crypto industry in the 8 years of rapid development from 2017 to 2024. In 2017, Bitcoin's market value was less than 100 billion US dollars, and now it has reached 2 trillion US dollars, rivaling the largest companies in the US stock market, Nvidia and Apple. The total market capitalization has also reached 3.5 trillion.

Apart from these, the differences between the crypto and stock markets have led to an exponential increase in trading volume in the crypto market.

1. Easy account opening, and you can even trade without an account as long as you have a wallet.

2. Unlimited segmentation, no limit on amount. Buffett's company Berkshire has a stock price of 710,000 US dollars, and high-priced stocks increase trading costs significantly. Although Bitcoin can reach 100,000 US dollars, it does not affect our ability to sell at just 10 US dollars.

3. 24-hour trading, trading hours have increased several times compared to US stocks.

4. The wealth effect of ICOs in the crypto world and stock IPOs can be compared, with lower thresholds, faster listings, and higher wealth effects.

5. A lot of trading tools (grid trading, martingale, etc.) and derivatives (contract options leverage).

According to publicly available exchange information in the past 30 trading days (from October 7 to November 15, 2024), Binance's total trading volume (spot + derivatives) significantly surpassed the data from major global stock markets.

- Binance's trading volume is 10% higher than Nasdaq.

- Binance's trading volume is 2 times that of the New York Stock Exchange (NYSE).

- Binance's Bitcoin trading volume is 4.5 times that of all Bitcoin ETF total trading volumes.

- Binance accounts for about 50% of the global centralized exchange (CEX) trading volume.

- During the US election week, the total inflow of USDT into major exchanges exceeded 20 billion US dollars, with Binance leading with an inflow of 7.7 billion US dollars.



From the data above, we can see that what is even more frightening than the trading volume is the efficiency of capital to make money. Binance publicly declared a capital reserve of 120 billion US dollars in early November, while accurate information on Nasdaq's reserve stocks has not been found, but it should at least be 10 times or even 100 times that of Binance. In other words, Binance's efficiency in making money is far surpassing that of the Nasdaq.

Looking at where the industry ceiling might be, the total market capitalization of all listed companies on Nasdaq is close to 31 trillion US dollars, with over 3,300 listed companies. The total market capitalization of companies listed on the New York Stock Exchange (NYSE) is about 30.03 trillion US dollars, with the seven giants of the US stock market at 11.5 trillion. Currently, the total market capitalization of the crypto market is 3.5 trillion, with Bitcoin at 2 trillion, accounting for 57%. The market structure of mainstream coins in terms of market capitalization ranking is similar to that of the seven giants, with a potential for a 10-fold increase.

However, this assumption is based on the presence of projects with strong fundamentals in the crypto market. What is still lacking is whether there will be companies born in the cryptocurrency market that could lead future technological development. This is the best landing for blockchain and the crypto industry. In the future, these rapidly growing companies will have another option besides listing on the New York Stock Exchange and Nasdaq for financing. Over time, Binance, as a leader in the crypto space, has not only surpassed Nasdaq in trading volume and profit efficiency but may also surpass it in status. Like Nasdaq, Binance can only reap the biggest dividends of this era by lowering financial trading thresholds and embracing the crypto industry, which is also why it can become the number one exchange.