With Binance launching Alpha 2.0, I believe it will have a significant impact on Binance and the entire cryptocurrency circle, changing the landscape of on-chain tracks. Let me share my thoughts on the whole situation.

Let me briefly talk about the content of Alpha 2.0

1) Users can directly purchase on-chain tokens on the Binance trading platform without needing to withdraw assets to an external wallet or create an on-chain wallet.

2) Users can use the funds in their Binance spot, capital, and other accounts to purchase Alpha tokens.

It is clear that the core point is that users can conveniently and quickly purchase Alpha tokens on Binance's main site without needing to transfer to a wallet, incur any gas fees, or copy contract addresses.

1 The number of users in on-chain trading increases by more than 10 times

You might not believe it, but even though it's 2025, the proportion of users on the chain is still not large. Have you heard of the concept of a sales funnel? There is a certain conversion rate at each step. Similarly, on-chain transactions still go through multiple steps. In 2020, when DeFi was popular on-chain, it required downloading a wallet address, remembering private and public keys, withdrawing from the wallet, and trading on a DEX. In recent years, the improvement of abstract wallets and exchange Web3 wallets has greatly simplified the process. However, taking Binance Wallet as an example, it still requires steps like creating a wallet (which is easier) and withdrawing assets from the exchange.

How many people are blocked by such operations? Binance's registered users number 250 million, while according to Artemis data, the total number of active addresses across various chains is 16.1 million. If we exclude wallets that belong to the same person across different chains, this number is even smaller. Thus, on-chain users account for only about 5% to 10% of exchange users.

And now, users can directly purchase Alpha tokens on Binance, which means the number of on-chain users will expand by more than 10 times. Purchasing power will also increase by at least 10 times.

2 Binance is fully embracing on-chain assets

It is evident that Binance is fully embracing on-chain assets and finding a way to strike from a lower dimension.

Currently, the leading players in on-chain transactions are GMGN and OKX wallets. They have accumulated rich experience on the chain, providing a good user experience and reputation. In contrast, Binance's Web3 wallet falls short. It may not be that the wallet team is not working hard, but rather that the competitors started early and have left them far behind.

From a business perspective, to defeat WeChat, you don’t need to create a better experience than WeChat’s 'Da Xin', but rather to create a Douyin. Similarly, if Binance wants to overtake in on-chain trading, it needs a completely new approach. I believe Alpha 2.0 is the correct posture, bridging on-chain and off-chain, allowing all exchange users to directly purchase on-chain tokens.

3 Future Pattern Changes

1) Alpha 2.0 will trigger changes in the entire on-chain trading landscape

Of course, it is not a negative for GMGN and OKX wallets; their impact may not be significant. Alpha 2.0 brings incremental users to the chain, just like both Douyin and WeChat can become giants. Moreover, GMGN and OKX users can trade all tokens on-chain, especially freshly launched ones. Alpha is selective, similar to Moonshot, where the number of tokens is limited but carefully chosen.

2) The token issuance strategy of project parties will also change accordingly

As we all know, the road directly to Binance exchange has always been very crowded. Now, a new path has opened, which is to Binance Alpha. Because now Alpha also reaches all of Binance's users, possessing massive potential purchasing power. For those project parties with good product quality but without strong backing, they can first issue on-chain, build a good community, which greatly increases the chances of going to Alpha.

In fact, the road from Alpha to Binance's main site is also smooth. Taking Shell and BMT as examples, they first launched an exclusive TGE on the Binance wallet and conducted an IDO. Then they went to Binance Alpha, and then to Binance contracts and the main Binance site. These two projects should be obvious signals from Binance to everyone.

This is a huge benefit for retail investors, as many project parties will conduct TGE on-chain first, allowing them to buy high-quality tokens at low prices.

In summary, the impact of Alpha 2.0 is enormous. It is not only a significant measure for Binance but also has great significance for on-chain trading and project parties. For us retail investors, it is a huge benefit.