Next, we may see an explosive growth in the number of users and a rapid increase in the amount of user assets. It is estimated that Binance's market value will reach more than 150 billion US dollars (corresponding to a BNB price of more than $1,000). According to media estimates, its revenue in 2023 will be 20 billion US dollars. Taking into account industry and regulatory factors, according to the US stock market, a company with an annual revenue of 20 billion is valued at 100-300 billion. Binance has surpassed traditional financial markets globally and is on the road to success in compliant operations.
This article is divided into several parts
Explosive growth in users in recent years
Crypto market penetration exceeds stock market penetration in many countries
Compliance brings advantages
1. Explosive growth of users
Today, Binance has just officially announced that it has completed the registration of an entity in India, and Binance's website and application are now fully open to Indian users. According to Chainalysis data, India ranks in the top five in the estimated transaction volume of centralized and decentralized trading platforms, lending protocols, and token smart contracts, and the market is not small.
Adhering to compliant operations brings huge advantages and brand effects. Binance is running wild in a market that we cannot see, and many times old users may not be able to perceive it.
In June 2024, Binance's global user base exceeded 200 million. The real explosive growth in the number of users has actually occurred in the past two years, with 40 million users added in 2023 and another 30 million users in the first half of 2024.
With the current user base of 200 million, Binance accounts for about 36% of the world's cryptocurrency users. The total number of cryptocurrency users in the world is about 562 million, which puts it in an absolute leading position. After Binance opens its doors to Indian users, it will once again see explosive growth in users.
According to statistics from the similarweb website, the monthly active users have reached 180 million, ranking in the top 10 of the website's financial rankings. The top-ranked countries include Turkey, Vietnam, India, Brazil and other countries.
2. Crypto Market Penetration
Crypto markets have far more penetration than stock markets in many third world countries, especially those with underdeveloped financial infrastructure or facing economic instability.
The increasing acceptance of crypto assets and the rapid development of the market have attracted a large number of users. In countries such as India, Indonesia, Vietnam, Nigeria, and Thailand, the number of accounts opened on crypto exchanges has exceeded that of traditional stock markets.
While other exchanges are rolling up their functions and continuously increasing the cost of attracting new crypto users, Binance has set its sights on users who have never been exposed to cryptocurrencies before. Their needs may not only be to trade and invest through exchanges, but also to fight against currency depreciation and to remit and pay for foreign workers. Binance complements the deficiencies of these countries' financial infrastructure.
Credit cards are popular in developed countries, and mobile payment is the most commonly used in China, but in third world countries, they don’t even have bank cards, but they can easily have a wallet to store digital assets. These are places that we can’t see, but there are huge users, and blockchain technology can really solve many problems for them, not just transactions.
3. Advantages of Compliance
This time, Binance chose the Indian market. India has the largest population in the world and ranks fifth in GDP. It is also a country with a high acceptance of crypto assets. Only by complying with regulations can it gain a larger market.
Binance's compliance has been at the core of its business strategy in recent years, focusing on safe, transparent and efficient operations. Only by complying with local market standards and providing strong user protection can we expand globally.
We can also see the advantages of compliance from Coinbase
A safe moat to keep other competitors out
Attractive to institutional investors, with assets under custody exceeding US$100 billion
Strict compliance measures reduce legal and regulatory risks and the possibility of bankruptcy
Improve brand and user trust
Currently, the total user assets of Binance have exceeded 100 billion US dollars, and there is a considerable gap between other exchanges. However, more institutional investors will enter after compliance, and the growth rate of total assets should be higher. significantly improved
Summarize
Binance's global user growth, increased penetration in the crypto market, and the advantages brought by compliance all indicate that its global market expansion is entering an accelerated period. With the development of emerging markets such as India and the entry of more institutional funds, Binance can further consolidate its industry leadership. I am optimistic that Binance's market value will reach more than 150 billion US dollars (corresponding to a BNB price of more than $1,000)
