Binance continues to dominate the CEX space. Declining NFT sales and staking trends indicate shifts in user interests.
Binance, one of the largest centralized crypto exchanges, has managed to dominate the CEX space over the past year, according to data from Delphi Digital.
Despite many crypto users opting for decentralized exchanges after the FTX debacle, Binance continued to see user growth. Binance even outperformed other major exchanges such as Coinbase and Huobi.
Realistic or not, here is the BNB market cap in terms of BTC
— Delphi Digital (@Delphi_Digital) January 21, 2023
One of the reasons for Binance’s continued dominance could be evidence of reserves. The exchange has implemented this system to instill the trust of the users especially after the collapse of FTX.
According to data from Dune Analytics, stablecoins dominate reserves, accounting for 57.3% of total reserves. The rest of the reserves consists of ETH (13.1%), BNB (10.2%) and other altcoins (19%). This transparent and secure system could have played a major role in keeping users on the platform, even in uncertain times.
In fact, activity on the Binance Coin (BNB) blockchain also increased. The number of daily transactions hit 2.44 million over the past week, and the number of daily active users on BNB has also increased.
In addition, despite a spike in revenue generated by the strikers, BNB’s strike rate has declined over the past 30 days. According to Staking Rewards, the metric is down 1.23% over the past 30 days, despite sales increasing 30% over the same period.
The NFT angle
The NFT market on Binance has also seen a drop in volume in recent months. According to data from Dune Analytics, demand for popular Binance NFTs declined.
Popular NFT collections like SPACE ID and PancakeSwap Squad have witnessed a 75% and 20% drop in traders respectively. Declining demand for these NFTs may be an indication of declining interest in the Binance NFT ecosystem.
Well, despite rising prices, Binance’s market cap decreased, and according to Messari’s data, a drop in volatility was also observed.
How many are worth 1,10,100 BNB today
While Binance has managed to maintain its dominance in the CEX space, the declining trends in NFTs and staking may signal a shift in user interests.
This post Binance dominates the CEX space, but here’s the main concern
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