In 2023, Binance faced unprecedented regulatory pressure that culminated in the withdrawal of the third-largest stablecoin, BUSD, from the market, the payment of an industry-record $4.3 billion fine and CEO Changpeng Zhao refraining from working at the company.

These events caused severe reputational damage and led to the cryptocurrency exchange's share of the spot market shrinking from 55% to 32% by the end of the year.

However, Binance has started to regain lost ground this year. Its share of the spot market rose from 32% to 36%, and trade volume reached $505 billion in February.

In the derivatives market, its trading volume totalled $1.53 trillion in February, and its share rose to 46.2%.

In March, open interest in Bitcoin hit a new high on the platform as it neared $8 billion. The previous record of $6.8 billion was set in November 2021.

Despite a tough year in 2023, Binance has maintained its global market leadership and seen an increase in trading in recent months. These circumstances have encouraged investors to buy BNB, whose price has jumped 66% to $518 since the start of the year.

However, Binance's future isn't as worry-free as it may seem at first glance. Its deal with the US Justice Department does not include an agreement with the SEC, which still considers the crypto exchange guilty of violating the Securities Act. Court proceedings will take place later this year. 

On top of that, the agreement requires Binance to give observers full access to financial transactions, which is a time bomb waiting to explode. According to John Reed Stark, a former SEC division head, it will be extremely difficult for the cryptocurrency exchange to avoid a protracted audit.

StormGain Analytical Group 
(platform for trading, exchanging and storing cryptocurrency)

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