According to DefiLlama's rankings, so far this year, the inflow of user funds to Binance, the world's largest digital asset exchange, is nearly 40% higher than the combined total of the next ten cryptocurrency exchanges, based on registered users and trading volume. According to data from the platform, by 2024, Binance's inflow was $21.6 billion, while the next ten exchanges had inflows of $15.9 billion (36% lower).
This year, global optimism for digital assets has surged, supported by significant regulatory advancements, increasing adoption rates, and prices reaching historic milestones, which have bolstered inflows into Binance. As more users transfer funds to the Binance exchange, participation may unlock a potential golden era for cryptocurrencies, with Binance's global user base growing to 244 million. Another strong driver of inflows could be the success of this year's Binance Launchpool program, reflecting users' growing interest in new tokens. Binance has observed that these funds tend to remain on the platform.
In 2024, the cryptocurrency industry reached historic milestones. Bitcoin ETFs have been approved in major markets such as the United States, Brazil, Hong Kong, and Australia, marking a broader acceptance of digital assets. In just one year, net inflows into BTC ETFs have exceeded those of gold ETFs, demonstrating the increasing role of cryptocurrencies in finance and their deeper integration with more traditional institutions and systems.
The launch of Bitcoin ETF options has made it easier for institutional investors to gain exposure and hedge risks, significantly contributing to the recent rise. With substantial funds flowing into these ETFs, Bitcoin is expected to further integrate into mainstream financial markets.
'2024 is a milestone year for the cryptocurrency industry, and we are very grateful for our 244 million users who continue to trust Binance as their chosen trading platform. Their unwavering support and confidence drive us to innovate and provide the best experience in the world of digital assets.' — Binance CEO Richard Teng
According to data from digital asset data provider CCData, another recently recorded milestone further highlights Binance's leadership in the cryptocurrency market, as it is the first centralized cryptocurrency exchange to exceed $1 trillion in lifetime trading volume.
On-chain and market data analytics provider CryptoQuant emphasized that this year 'marks a significant shift in the cryptocurrency industry, with exchanges reporting a sharp increase in average Bitcoin and USDT deposit amounts, indicating higher institutional participation. The average Bitcoin deposits across all exchanges have risen from 0.36 BTC in 2023 to 1.65 BTC, while USDT deposits surged from $19,600 to $230,000. These larger deposits reflect the growing interest of professional and corporate investors, distinguishing institutional activity from retail trading.'
Their report stated, 'Binance is leading the industry in institutional growth, with the largest average increase in Bitcoin deposits among major exchanges.'