According to a report by CryptoCompare, as a result of rising inflation worldwide, the Binance crypto exchange increased the number of retail investors the most in countries where they were struggling with the highest inflation.
People living in countries affected by inflation are always looking for alternative means to protect their wealth against depreciating fiat money. Crypto exchange Binance made huge capital from this trend last year. Mainly because it was easily accessible to retail investors in such markets, according to CryptoCompare 2022, which tracks trends in digital assets. from its meaning.
Binance gained the largest market share among exchanges, posting a 16.3% increase, according to the report.
“Binance’s growing market share is also due to the growing adoption of cryptocurrencies, especially in emerging markets” – says the CryptoCompare report. The stock market is often the most accessible choice for users in emerging markets, the report added.
Binance is the world’s largest exchange by trading volume, according to CoinMarketCap. Its spot trading volume of more than $14 billion in the last 24 hours exceeded the trading volume of the next 20 exchanges ranked by CoinMarketCap.
Amid last year’s macroeconomic chaos, inflation in Brazil and Russia reached 11.9% and 17.2%, respectively. During these peaks, Russian Ruble (RUB) and Brazilian Real (BRL) volumes on Binance increased by 232% and 72%, respectively.
Inflation was even higher in other countries with less developed economies. This enticed citizens there to seek assets less exposed to currency deterioration, fleeing eroding inflation.
“We expect continued adoption and growing volumes of cryptocurrencies in emerging markets despite the inherent risks of cryptocurrencies” the report states.
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