Despite a tumultuous period in 2023 marked by lawsuits and regulatory scrutiny, Binance has shown signs of stability according to new data. The exchange did not experience the same magnitude of challenges in reserve management as FTX, as indicated by a more stable 30-day reserve trend. Binance’s Volume-Reserve Ratio (VRR) score suggests a reduced risk for the exchange, with a more manageable level of volume to reserves.
In contrast to FTX, which exhibited high-risk periods leading to its collapse, Binance’s Open Interest Reserve Ratio (ORR) score, relevant for derivative exchanges, indicates a more stable performance in terms of net open positions and liabilities. Despite these positive indicators, Binance could face future issues as Apple removed the platform and other exchanges from its App Store at the time of writing.
The removal by Apple could lead to a significant user loss for Binance, potentially increasing Fear, Uncertainty, and Doubt (FUD) against the exchange. If uncertainty regarding centralized exchanges continues, it could result in mass withdrawals affecting exchanges, particularly Binance.
However, Binance’s exchange volumes increased in the last quarter of 2023, with January’s trading volume reaching $143.32 billion. If Binance can mitigate the FUD and the positive trend continues, the outlook for the exchange could improve.
While Binance’s progress and recovery have been notable, the BNB token has not experienced the same positivity in price performance, which remains a concern for the exchange’s future.