30% increase in Binance trading activity
In the middle of the FTX Fiascowhich was followed by several crypto companies that filed for bankruptcy, Binance has seen a substantial 30% increase in commercial activity in November.
The catalyst for the FTX collapse was Changpeng “CZ” Zhao’s, CEO of Binance Nov. 6 announcement that the exchange was selling its FTT holdings because FTX’s native token was too risky. FTX had operated the second-largest cash and derivatives exchange, according to Bloomberg.
“Monthly trading volume jumped 23% to $705 billion for the biggest exchanges in November, bolstered by FTX-related volatility. noted researcher Kaiko in a newsletter this month. “The increase was mainly due to Binance.”
The Bloomberg Galaxy Crypto Index fell around 18% in Novemberand the index is already down about 67% this year, according to the report.
Other Struggling Crypto Exchanges
Crypto investors seeking to withdraw their funds from FTX sparked the contagion spreading across the crypto industry. Genesis Global Trading has warned of bankruptcy if it cannot raise enough funds. The difficulties faced by Genesis prompted crypto exchange Gemini to suspend redemptions of its Earn product.
Last week, the cryptocurrency lender BlockFi announced that it had filed for Chapter 11 bankruptcy protection with eight affiliates in a New Jersey court. It listed FTX as its second-largest creditor, with $275 million in debt on loans made earlier this year.
Binance disclosed its assets and wallet addresses where the exchange stores client funds in a bid to improve transparency.
“Binance may benefit from this, despite having no official headquarters, as it has projected an image of strength through the crisis with the best liquidity of any centralized exchange,” according to the newsletter, according to the Bloomberg report. .
Also FTX’s collapse may benefit US-regulated exchanges such as Coinbase and Kraken, who suffered major layoffs. Exchange trading volume also increased in November, while activity on smaller crypto trading fell, given the higher volume of users and institutions wary of off-shore trading, according to the newsletter.
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