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8 Years of Binance
From a small exchange to global crypto market infrastructure
Binance launched in July 2017 in a market that lacked structure, depth, and trust. At that time, crypto exchanges were small, fragile, and mostly retail driven. Liquidity was thin, outages were common, and a single large trade could move prices sharply.
Early market conditions in 2017
In 2017, the crypto market faced several clear problems:
• Shallow order books
• High slippage on normal trades
• Poor price discovery
• Frequent downtime during volatility
• Limited security and risk controls
At launch, Binance listed a limited number of assets. Most trading volume came from Bitcoin, Ethereum, Litecoin, XRP, and BNB. Daily volumes were small compared to today, and liquidity was spread across many weak exchanges.
Binance’s early advantage was execution. It offered lower fees, faster trade matching, and more stable uptime than competitors. Growth was driven almost entirely by retail users.
Liquidity as the core challenge
Between 2017 and 2019, liquidity was the main bottleneck for the entire industry.
Problems during this phase:
• Wide bid ask spreads
• Large price impact from market orders
• Easy market manipulation
• Fragmented volume
Binance focused on concentrating liquidity rather than only adding listings. It attracted active traders and market makers through fee incentives and performance improvements. As volume grew, tighter spreads followed.
This is when Binance became a primary price discovery venue, not just a trading app.
Surviving bear markets and industry failures
From 2018 to 2020, crypto entered long bear markets. Many exchanges failed, froze withdrawals, or lost user funds. Trust across the industry collapsed.
Binance continued operating through this period and shifted focus toward:
• Infrastructure stability
• Wallet and custody security
• Internal risk controls
• Operational resilience
This phase slowed expansion but strengthened the foundation. Survival mattered more than growth.
Expansion into derivatives and deeper markets
The introduction of futures and perpetual contracts marked a turning point.
By the early 2020s:
• Binance derivatives volume rivaled major global exchanges
• Futures added continuous liquidity and hedging tools
• Institutional traders and arbitrage desks entered
Derivatives increased both liquidity and responsibility. Binance invested heavily in liquidation engines, margin systems, insurance funds, and real time risk monitoring to prevent cascading failures during volatility.
This shifted Binance from a spot exchange into full market infrastructure.
Growth in scale and valuation
As of 2026, Binance operates at massive scale:
• Over 200 million registered users globally
• Daily trading volumes often exceeding tens of billions of dollars
• One of the largest liquidity pools in crypto markets
• Estimated company valuation in the tens of billions of dollars
Change in listing standards
Early Binance was known for fast listings. Over time, this approach changed.
Reasons for stricter listings:
• Regulatory exposure
• Liquidity quality requirements
• User protection
• Reputation risk at scale
Today, listings are slower, more selective, and focused on long term viability rather than short term hype.
Liquidity maturity by mid 2020s
Compared to 2017, today’s Binance markets show:
• Deep order books
• Minimal slippage on large trades
• Narrow spreads on major pairs
• Continuous global liquidity
Liquidity maturity reduced manipulation risk and improved fairness for users.
User base evolution
Early users were mostly retail traders. Today, Binance serves:
• Retail users
• Long term holders
• Professional traders
• Funds and institutions
• Market makers and arbitrage desks
This diversity stabilizes markets and improves execution quality.
Regulation and transparency
As Binance expanded globally, regulatory scrutiny increased. The company adjusted operations through:
• Region specific platforms
• Enhanced compliance processes
• Licensing efforts
• Proof of reserves reporting
Proof of reserves helped restore trust after major industry failures, showing asset backing and improving transparency.
Binance today
By 2026, Binance functions less like a startup and more like financial infrastructure.
Its responsibilities include:
• Continuous uptime
• Stable liquidation systems
• Secure custody of user assets
• Risk management during extreme market stress
Failures at this scale would have industry wide impact.
Key milestones summary
Major milestones include:
• 2017 launch
• Liquidity concentration phase
• Survival through bear markets
• Derivatives expansion
• Institutional participation
• Regulatory restructuring
• Transparency initiatives
Each stage addressed a real structural weakness in the market.
Conclusion
Binance’s eight year journey mirrors the evolution of crypto itself. The market moved from thin liquidity to deep markets, from speed to structure, and from retail chaos to institutional participation.
Binance did not grow only by adding users or coins. It grew by building liquidity, managing risk, and adapting to responsibility at scale.
That is the factual story of Binance after eight years.
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