Will Binance Maintain Its Dominance in Bitcoin and Crypto Markets After the Crisis?

• According to a research report published by broker Bernstein on Wednesday, Binance has $67 billion in assets responsible for customer funds.
• Analysts led by Gautam Chhugani said, “Binance’s reputation with non-US retail customers has remained strong during the crisis.”
• Bernstein indicates that the crypto exchange has sufficient funds to pay the $4.3 billion fine while continuing its healthy operations.

What will happen after the pressure and challenges faced by Binance in the United States? Insights from expert analysts on Binance Exchange dominance!

After the Crisis at Binance, What Will Happen?

According to a research report published by broker Bernstein on Wednesday, which stated that the outflows from the exchange after the news of the settlement with the U.S. government were less than $1 billion, there is no significant panic among customers, and Binance is still the dominant cryptocurrency exchange globally. The report also mentioned that Binance has $67 billion in assets responsible for customer funds.

Analysts led by Gautam Chhugani said, “Binance’s reputation with non-US retail customers has remained strong during the crisis.” Bernstein expects Binance to remain a “material asset” in markets outside the U.S., but they anticipate increased competition from listed competitors like Coinbase (COIN) and new exchanges in regulated markets like Hong Kong and Singapore.

Bernstein points out that Binance has sufficient funds to pay the $4.3 billion fine while maintaining healthy operations. The authors write, “Complete withdrawal from the U.S. would mean a continuation of the dominance of black markets and existing exchanges in the U.S.,” noting that asset managers who have applied for ETFs already work with exchanges like Coinbase and collaborate on providing services and custody. Analysts continued:

“In our view, this is the last effort made before officials feel comfortable approving a regulated Bitcoin ETF.”

Positive for Binance and CZ

Crypto service provider Matrixport views the settlement as very positive for Binance founder Changpeng “CZ” Zhao and the company, even though it was not made by the Securities and Exchange Commission (SEC), stating that the company will still be among the top three exchanges in the near future.

Markus Thielen, Chief Research Officer at Matrixport, says, “With this deal, expectations for a spot Bitcoin ETF are likely to rise to 100%, as the industry will be forced to comply with the rules that traditional finance (TradFi) firms must follow.” Referring to traditional finance, the term “TradFi” is used.