For years, Binance has remained a top cryptocurrency exchange attracting diverse users globally. However, recently the exchange has faced regulatory woes but has managed to retain a high number of visitors.
According to data acquired by Finbold, Binance recorded the highest web traffic among digital currency exchanges in October this year at 171 million. The number of visitors grew 12% from September’s figure. Coinbase emerged second, adding 31% more visitors in October to 91 million. PancakeSwap ranks third with 25 million visitors.
Among the top ten exchanges with high visitors, only ByBit recorded a drop of 8% to 24 million in October. FTX ranks fifth with 22 million visitors, a growth of 10% from September.
Elsewhere, KuCoin ranks in the sixth spot at 20 million visits, representing 38% growth from the September figure. Gate.io grew 41% to 19 million, while Indodax emerged eighth with 17 million visitors. UPbit registered 14m million visitors while Kraken emerged with the tenth highest visits at 13 million.
The top 10 cryptocurrency exchanges – by visitors
Rising crypto value drives visitors to exchanges
Finbold said it is worth noting that most of the exchanges recorded an influx of visitors between September and October. During this period, the crypto market was recovering after plunging mid this year. At the time the numbers came out, Bitcoin was heading for another all-time high. Therefore, the visitors potentially highlight the number of investors intending to profit from various growing assets.
Notably, cryptocurrency exchanges are crucial junctures between users and the broader blockchain ecosystem. However, the sector is facing scrutiny from regulators globally that might impact the general uptake among users.
Furthermore, the exchanges need to remain competitive as more players join the scene.
How Binance has been able to hang onto top spot
Cryptocurrency exchanges remain critical points of access for investors. The industry is becoming more competitive and there are also the regulatory issues to bear in mind. Binance ran into difficulties in the UK, for example, when the FCA determined that it would need to be regulated.
While there are more kids on the block, Finbold reckons that “Binance appears to be miles ahead in the highly competitive markets. The figures are potentially in line with the Binance business model that has been considered innovative.”
Binance has continued to use Malta as its regulatory hub, which means it has more of a light touch domestic regulator to worry about. It has also been able to offer traders one of the broadest menus of cryptocurrencies on the market. Access to the new and most trendy coins is going to be a key part of the competitive edge for cryptocurrency exchanges.
Binance has also been able to offer its own native token, BNB, and is one of the few exchanges to launch its own ICO.
The big question for Binance and its closest competitors like Coinbase is what the regulators have in store. We believe that a decision by regulators to tighten restrictions on cryptocurrencies is going to start with the exchanges. Binance currently also profits from its ongoing partnerships with Mastercard and Visa, but that could change rapidly if the SEC decides to turn up the heat.