Strategy is really important.
Among the major companies in the crypto industry, the strategy of Binance that I admire the most is from going global, to creating platform tokens, then developing public chains, and embracing compliance.
At the beginning of the year, most of the on-chain liquidity was still on various memes of Solana, while the traffic entry was controlled by competitors' web3 wallets.
Perhaps no one could have predicted that just a few months later, the liquidity on-chain is on Binance, and the traffic entry is also on Binance.
Clearly, in the future of liquidity shifting to the blockchain, Binance will still hold the top position in trading volume.
Since entering May, Binance Chain's trading volume has long occupied about 50% of the on-chain trading volume, and today it has even reached 60%!
This move by Binance is a strategic tilt towards on-chain trading, much like Tencent did ten years ago when it launched WeChat on mobile, revolutionizing its dominance in PC QQ.
Of course, many people will say that many exchanges here are just for retail investors to scrape profits, and once the airdrop of Binance Alpha is gone, this trading volume will disappear~
However, I believe that Binance Alpha will continue in the long term because this model is healthy:
On the one hand, Binance leverages its dominant position in the exchange to obtain a large share from project teams to distribute airdrops to users.
Before Binance Alpha, the airdrop for Binance Coin holders had already been ongoing for more than two years and is still continuing~
For project teams, because of the large number of retail investors boosting trading volume, there is sufficient liquidity for them to exit.
Don't think that the trading volume on centralized exchanges isn't being boosted; that trading volume is actually even more unhealthy when supported by market makers, as project teams cannot exit.
As a result, many projects claiming to support the Bitcoin ecosystem or Solana have also given up in front of liquidity, all coming to issue tokens on Binance Chain.
There are rumors that it has even affected the listing business of other second and third-tier exchanges!
If this continues, a number of exchanges will probably shut down in the second half of the year~
Moreover, the enthusiasm of retail investors in increasing volume is intensifying, with various non-crypto individuals also entering the market to boost trading volume.
It seems that Binance, retail investors, and project teams are all quite satisfied, but the question arises: everyone knows this is a zero-sum game, so who is ultimately footing the bill for this feast?
It must be you who insists on increasing volume every day but still hasn’t received any airdrops!
