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What Binance can benefit from Bitcoin price developments

  • Bitcoin’s rise benefited Binance, particularly with increased interest in Bitcoin ETFs.
  • Binance's key role in BTC liquidity and trading volume has positioned it well amid growing interest.

Bitcoins [BTC] The rally inspired the growth of many other coins in the sector. Interestingly, exchanges have also benefited from BTC’s price movement.

Binance sees growth

Bitcoin’s recent rise, fueled by ETFs, had a positive impact on Binance. The exchange saw increased liquidity and a daily trading volume of over $10 billion in February, underscoring its continued importance in the market.

Although these volumes have not yet reached the 10-month highs seen just before the ETF launch, Binance's role remained important.

Examination of Bitcoin's average trade size on Binance, which serves as an indicator of institutional participation, shows that it reached its highest level in a year on February 13 and has remained consistently above $1,000 since the beginning of 2024.

In terms of market depth, the measurement of aggregate bids and asks on BTC order books, the exchange has seen a notable improvement.

Market depth is up 23% since the end of November and 30% year-over-year, reaching $485 million. This improvement suggests a revival of market maker activity on Binance.

As interest in Bitcoin and ETFs increases, Binance stands to benefit from its role as a prominent exchange, particularly in the context of spot ETF listings.

Source: Kaiko

Legal problems

Despite all the good news, Binance sentiment could face challenges due to legal issues. U.S. prosecutors are asking a federal judge to ratify a settlement agreement with Binance Holdings Ltd., a major cryptocurrency exchange.

The exchange has admitted failing to comply with anti-money laundering (AML) regulations and sanctions violations and has agreed to a historic $4.3 billion fine. Prosecutors highlight the willful misconduct of Binance's top executives and point to significant risks to U.S. financial stability.

Additionally, former Binance CEO Changpeng Zhao pleaded guilty to anti-money laundering charges, which could potentially result in a 10-year prison sentence, although a shorter sentence is expected.

With the impending sentencing and the appointment of a new CEO, Richard Teng, Binance is at a critical juncture. Teng must deal with the fallout from the plea and focus on restoring trust with both customers and regulators.

How much is 1,10,100 BNBs worth today?

Despite the issues the exchange has faced, the BNB token has remained largely unaffected. At press time, it was trading at $357.56 and its price has increased by 1.38% in the last 24 hours.

Trading volume also increased by 13.77% during this period.

Source: Santiment

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