Kaiko: Liquidity Flywheel Propels Binance To 300M Users
In Brief
Kaiko’s report highlights Binance’s growth to 300 million users, emphasizing its robust trading infrastructure, deep liquidity, low execution costs, and broad adoption across retail and institutional markets.
Kaiko, a global provider of institutional-grade digital asset market data, has published a detailed report analyzing Binance’s growth in registered accounts, focusing on its trading infrastructure, liquidity approach, adoption trends, and execution reliability that serve both retail and institutional participants.
The report notes that Binance reached 300 million registered accounts in December 2025, eight years after its launch. In its early years, when many exchanges struggled with complex interfaces and frequent outages, Binance attracted users through a reliable matching engine, an intuitive interface, and rapid token listings. This combination drew liquidity when competitors were constrained, creating a self-reinforcing cycle: as order books deepened, tighter spreads reduced execution costs, participation increased, and market depth compounded—yet this success stemmed from consistent execution and usability rather than a predesigned dominance strategy.
On December 1, 2025, Binance’s spot platform processed $20 billion in 61.9 million trades across 449 assets and 1,630 trading pairs. The BTC-USDT order book demonstrated robust depth, with $16 million on the bid side and $26 million on the offer side within 1% of the midprice of $96,624. Substantial liquidity remained tightly concentrated during normal trading hours, enabling both retail and systematic strategies to operate with minimal market impact. These conditions illustrate how Binance has achieved adoption at scale.
Examining Binance’s Growth: Liquidity Evolution And Infrastructure Resilience Driving Global Adoption
Kaiko highlights that Binance’s formative years were defined by a straightforward market principle: liquidity follows user activity. During 2017 and 2018, the exchange lowered barriers for a global retail audience, quickly attracting volumes and surpassing competitors by early 2018, just months after its July 2017 launch.
Today, Binance’s infrastructure demonstrates why execution costs remain low even as trading activity shifts between assets. Market structure has aligned in several key ways, with the cross-venue basis between Binance’s BTC-USDT and Coinbase’s BTC-USD generally staying within a basis point under normal conditions. The platform’s ability to handle peak capacity during periods of high volatility remains a differentiator; in October, Binance processed over $60 billion in spot volume in a single day despite intraday swings of approximately 20%.
Examining the adoption curve, Kaiko observes that user behavior, reflected in volumes and order book conditions, points to a broad base of retail participation augmented by systematic strategies and institutional rebalancing. On a representative day, Binance executed 61.9 million trades totaling $20 billion in spot volume, indicating a pattern of small, frequent trades. The long tail of activity continues to maintain tight spreads on select trading pairs, and liquidity adjusts swiftly in response to shifting market narratives.
ADGM License Paves The Way For Expanded Institutional Flow And Strengthened Liquidity
Binance’s ADGM license granted in December 2025 represents a significant institutional milestone, positioning the exchange within Abu Dhabi’s emerging digital finance ecosystem through three regulated entities: an exchange, a clearinghouse, and a broker-dealer. The license, effective January 5, 2026, provides regulatory clarity across multiple jurisdictions and reinforces Binance’s credibility in ongoing European discussions by demonstrating operational rigor under a recognized framework. This dual licensing enhances network effects, attracting institutional flow from MENA and Asia-Pacific corridors, deepening liquidity, tightening spreads, and strengthening the competitive moat that has supported Binance’s growth toward 300 million users.
The platform’s expansion to hundreds of millions of accounts reflects not only numerical growth but also increasing confidence in cryptocurrency as a mainstream asset class, validating the regulatory progress of recent years. Binance’s rise is rooted in compounding volume, predictable liquidity, and deliberate design choices that emphasized accessible quote markets and broad asset coverage. Growth has followed a clear trajectory: higher turnover drives liquidity, which lowers execution costs and fuels adoption. As trading volumes expanded, spreads compressed, and depth within tight price bands became consistently reliable, sustaining user engagement through multiple market cycles.
Today, cross-venue prices remain aligned within a basis point under normal conditions, order books replenish rapidly under stress, and quote currency diversity continues to increase. Despite these strengths, risks persist around concentration and the stability of individual quote rails, highlighting the importance of redundancy and transparent market design. For both retail and institutional participants, effective execution relies on evaluating liquidity where it matters most, including tight band depth, effective spreads, depth resiliency, and cross-venue basis, while routing trades with an understanding of how these factors vary by venue, time of day, and quote currency.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
