Cryptocurrency remains an increasingly popular industry. Despite falling prices, the leading trading platforms continue to attract a lot of users. Binance is confident the company can net yearly profits of up to $1 billion by the time 2018 comes to an end. An ambitious goal which may prove difficult to achieve.
Binance Revenue Is Substantial
Cryptocurrency exchanges are the backbone of the cryptocurrency ecosystem. Binance has quickly risen through the ranks in this regard. The company has made great strides to improve its market position since its founding a year ago. Being selective about which currencies to trade has earned them a lot of credit with the cryptocurrency community.
Despite ongoing price declines for most currencies, the company still does well. Binance has a reported combined Q1 and Q2 revenue of nearly $300 million. A more than respectable amount considering how 2018 has been abysmal for the cryptocurrency industry. To this day, the company processes nearly $1.5 billion in daily turnover. This is made possible thanks to its 10 million users.
The demand for cryptocurrency has not slowed down in recent months. Falling prices tend to attract new investors and speculators. Bitcoin’s current price is more approachable for regular consumers compared to paying $19,000 per coin. Additionally, there are high expectations of the market seeing a new uptrend in late 2018. Fundstrat’s Tom Lee still believes Bitcoin will hit $20,000 in the coming months.
Expanding Beyond Cryptocurrency
The revenue generated by Binance is the direct result of a multi-pronged approach. Outside of the cryptocurrency world, the company is making inroads as well. Their focus on regions such as Uganda and Bermuda have not gone by unnoticed. Binance is also involved in Malta’s blockchain and cryptocurrency ecosystem, which has yielded interesting results.
All of these efforts have resulted in major user growth for Binance. In January, close to 2 million individuals were using this platform. Quintupling that number in just six months is very impressive. One also has to keep in mind this trading venue has only been active since July of 2017. Launching the platform at the right time has been critical in this regard.
All of these figures indicate Binance is continuing to grow at an accelerated pace. That in itself shows the cryptocurrency industry is still in a very good place. While the markets have suffered from a dip, the ecosystem itself continues to grow and improve. More attention from mainstream consumers highlights the future potential of this industry. Binance has its role to play in that evolution.
Do you think Binance will hit $1 billion in revenue by the end of 2018? Let us know in the comments below.
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