Binance exchange recently faced rumors regarding insolvency due to which hefty amounts of funds were withdrawn from the platform. This impacted the BNB price as well which dropped heavily by nearly 24%. This drop ignited ripple effects within the crypto space as most of the cryptos including the Bitcoin price dropped heavily marking a double-digit loss.
However, it was largely considered as a FUD as Binance is a very strong exchange and BNB token is a little more diverse than FTT. While Binance Coin is the native token of both the Binance Smart chain and Binance exchange, FTT is the native token of the FTX exchange only. Besides, there are some more features that keep Binance away from the crowd.
- Binance Smart chain or BSC is the world’s most used chain with the second highest TVL. BSC also has more active users than Ethereum, Polygon, and Solana combined.
- Apart from this BSC is the most used blockchain by top NFT games as well. 9 out of 25 top NFT games, making it the most preferred blockchain for crypto games
Accoding to nansen data BNB, the native token holds the 4th largest share within the reserves with 10.2%, while BUSD tops with 26.38%, followed by USDT with 21.61% and BTC with 14.94%
- Pancakeswap which is BNB’s top DEX has a TVL of $3.1 billion on the chain.
- Venus, one of the popular lending protocol has a TVL of $1 billion on the chain
- BiSwap, well-known DEX has a TVL of $250 million on BNB chain
- ApeSwap DEX has a TVL of $52 million on the chain
- Binance, as an exchange has nearly 120 million users which is the highest of all
- The exchange holds 75% of CEX market share with $56 billion + in reserves and survived stress tests including over $10 billion withdrawals last week.
- The popular exchange has also processed Futures volume of nearly $15 trillion this year alone which could have netted them an estimate of $3 billion in fees just from future trading
- The platofrm has a strong revenue sources such as Spot and Margin trading as well as offeings, generating an estimate of $20 billion in revenue in 2021
Besides, FTX exchange had a lot of loans which were taken with FTT as a collateral. This further coupled with the lack of strong organic demand for FTT and revelations about FTX’s misconducts intensified its downfall. Conversely, Binance has no loans with BNB as collateral and the strong fundamentals of the token isn’t anyway similar to FTT.
Overall, the Binance platform has been proved as the largest and the preferred platform and also has maintained trnasperency with the Proof-of-Reserves. Therefore, the platform may not experience the same fate as FTX and BNB price may rebound finely in the coming days.
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