Binance has surpassed rival Coinbase to hold the most Bitcoin in the world.
Binance holds the majority of BTC
Both exchanges have been rallying in opposite directions. While Coinbase has taken hit after hit in the bear market, Binance has been charging ahead. Binance has surpassed Coinbase as the exchange with the largest Bitcoin holdings globally in the most recent lap of their race. In 2020, Coinbase Global held approximately 1 million BTC. However, as users sold their Bitcoin, Coinbase’s funds suffered greatly, causing them to fall behind Binance.
Users Rebuff Custodial Ownership
The nature of Coinbase’s digital asset storage is a major reason for its loss of funds. Coinbase, as a centralized exchange, keeps 98 percent of all users’ digital funds in cold wallets. Although it is the most secure form of storage because it involves storing digital assets in physical hardware that is not connected to the internet, it also limits users’ control over their assets. Because of this custodial ownership, many users left Coinbase and withdrew their funds, believing that “not your keys, not your crypto.” Instead, investors are storing their funds in a way that allows them to manage their own private keys and thus have complete control over their assets.
Coinbase lags behind
Despite holding the most Bitcoins since 2014, Coinbase’s luck ran out in 2021, when its holdings began to fall while Binance’s holdings increased dramatically. Finally, on July 18, 2022, Binance surpassed Coinbase, compounding the latter’s woes. Coinbase has already been hit hard by the bear market. It was forced to halt its affiliate program, Coinbase Pro, and lay off workers.
There have also been whispers of a possible bankruptcy filing. The Coinbase NFT marketplace has also struggled to gain traction in the few months since it went public. Furthermore, the company’s stock has recently fallen in the stock market. Experts do not believe Coinbase can reclaim its position as the largest BTC storage facility, as other exchanges such as FTX are giving it stiff competition.
Binance is driving the charge
Binance, on the other hand, is thriving despite the bear market. CEO Changpeng Zhao (CZ) has remained in the public consciousness through repeated appearances and participation in current events. Binance Coin (BNB) has also managed to secure the fifth largest cryptocurrency by market capitalization. It appears to be unaffected by the Terra LUNA crash as well, as it has not imposed any transaction restrictions on its customer base. Like many other companies, the platform is not withdrawing from any of its commercial agreements. In fact, it has taken the opposite approach and increased the number of partnership agreements. Binance has suspended Bitcoin transaction fees from its platform as part of its five-year anniversary celebrations.
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