By Anastasia Ermolaeva
Now it is hard to believe that Binance was established in 2017 as in a short period of time Changpeng Zhao’s child managed to become the biggest crypto exchange in the world in terms of the daily transaction volume and was successfully holding this position for a while up to the recent point. According to the CryptoCompare’s report, Bithumb surpassed Binance by the trading volume, hitting $1.24B in November in comparison with the Malta-based exchange’s result of $641M.
If we have a look at another popular statistic resource, right now not only Bithumb is topping Binance but other exchanges like BitMEX, Coinbit and OKEx taking into account their reported volumes. Even judging by adjusted volume indicator, OKEx leaves Binance behind. So, considering that Binance has been continuously introducing new developments, naturally the following questions arise: what are the reasons that have made Binance to leave its throne, whether this situation is temporary or not and how much of the real state of affairs existing statistics actually reflect.
Regarding the above-mentioned report, Bithumb performed a 284% increase in the trading volume comparing to the September/October indicator mainly due to its acquisition by the BK Consortium, which implied additional funds invested in the exchange, that in turn allowed it to hold a series of airdrop competitions and raffles, offer different discounts and promotions to motivate users, including non-Koreans, to sign up to the exchange as well as to implement trans-fee mining, encouraging users to trade more actively for rewards. Moreover, the exchange is working out different mechanisms of interacting with their clients such as giving them an opportunity to vote for tokens they want to be listed.
From the chart above it arises that these marketing tools turned out to be quite effective since they did not only create the highest trading activity on Bithumb among other exchanges, but making Korean Won the most popular fiat for the BTC spot deals.
Our expert Seth LIM, who is the Founder of one of the Singapore blockchain-company, believes that incentive events for traders to do more trading such as temporarily reductions in trading fees or even a Tesla Model S giveaway to the trader with most volume transacted, which was once held by Kucoin, can lead to changes in the ranking of top exchanges, however these alterations are of a temporary nature. “In my opinion OKEx is the strongest competitor for Binance because of OKEx margin trading option”, – assumes our expert, continuing: “Margin trading is a more advanced trading option that allows traders to place orders of available digital assets with borrowed funds from OKEx, increasing the leverage or buying power compared to spot trading”.