How can Gate.io break through outside Binance and OKX?

Original link: https://cn.cointelegraph.com/news/beyond-binance-and-okx-how-gateio-carves-its-own-path-to-break-through

Original source: Cointelegraph Chinese

The global cryptocurrency exchange industry presents a multi-level and differentiated competitive landscape. ​Based on market share, growth rate and strategic positioning, the main exchanges can now be divided into three categories: giant-level, challenger-type, and steady-state stalkers.​

Giant level

Binance

As the world's most influential crypto exchange, Binance is still ranked first in terms of spot, derivatives and user size. As of 2024, its spot share accounted for as high as 48.2%, which means that its platform Binance Coin (BNB) has a strong user coverage and ecological foundation. However, Binance's annual market share fell from 42.2% to 32.7%, and it began to show a marginal slowdown in terms of user growth and share stability.

Challenger type

OkX

OKX performed well in both spot and derivatives markets. Last year, its spot trading volume reached US$606 billion, ranking in the top three. However, in February this year, its operating company Aux Cayes FinTech Co was fined $505 million for violating the U.S. Anti-Money Laundering Act and needed to hire an external compliance consultant by 2027.

Bybit

Bybit has risen rapidly in recent years, ranking second in 2024 with an 11.5% spot trading share. Its growth is driven by new token listings, low-cost strategies and market opportunities after the FTX crash. In addition, Bybit has established strategic cooperation with blockchain projects such as Solana, TON, and Sui, which has promoted the development of the Web3 ecosystem.

Stable stalker

Gate.io

Gate.io has won the trust of users with its continued investment in security and transparency. Since 2020, Gate.io has become one of the first 100% reserve certificate exchanges to implement.

In addition, Gate.io has also introduced zero-knowledge proof (zk-SNARK) technology, further improving the privacy and security of reserve proofs. ​The platform's reserves cover 209 digital assets, including mainstream currencies such as Bitcoin (BTC), Ethereum (ETH), and USDT, all achieving a reserve ratio of more than 100%.

Cryptocurrency exchange market structure. Source: TokenInsight

**Breakthrough against the trend: The road to self-innovation of the

middle-middle exchange**

Under the dual squeeze of high market inversion and stricter regulation, the mid-lumbar exchange was once regarded as a "compassed part of the times." However, it is in this seemingly unsolvable game that many mid- and mid-level platforms have begun to break the fate of "eliminating either the head or the elimination", and no longer blindly imitate giants, but instead find their own living space and growth paths through differentiated positioning, refined operations, expanding vertical user tracks, and strengthening compliance and technology parallelism.

Taking Gate.io as an example, its key breakthrough strategies and achievements are:

Full compensation mechanism and transparent reserve

On April 23, when Gate.io fluctuated during the system upgrade, it launched a full compensation mechanism to ensure that user rights and interests are not affected. Chief Commercial Officer Kevin made it clear in AMA Live that the platform will provide 100% compensation due to the impact of this upgrade, reflecting the platform's firm commitment to the safety of user assets.​

As of January 17, the total value of Gate.io's reserves reached US$10.328 billion, with a reserve ratio of as high as 128.58%, and the scale of excess reserves reached US$2.296 billion, with an excess reserve ratio of 28.58%, an increase of US$450 million from December last year, an increase of 24.38%. Platform reserve data is also audited through authoritative blockchain security company Hacken.

Product innovation and ecological expansion

● New Coin Online: Last year, Gate.io launched 873 new tokens, of which 437 were exclusive firsts, providing users with a wealth of investment options;

● Memecoin Market Layout: By launching dedicated Pilot and MemeBox, the platform has attracted a large number of users in this emerging market. In addition, Gate.io has set up a $50 million dedicated fund to support the booming Memecoin market;

● TON Eco-Cooperation: Through cooperation with Telegram, Gate.io launched the Gate Wallet Mini App and Mini App, attracting many users of the TON ecosystem. ​These applications have more than 2.55 million monthly active users and 1.4 million respectively, further strengthening the platform's influence in the Web3 and blockchain ecosystems. ​

Diversified brand cooperation

In February this year, Gate.io announced a multi-year cooperation agreement with the F1 Red Bull team. Starting from the 2025 season, Gate.io's brand identity will appear on key parts of Red Bull Racing's rear wing, front, headrest, wheel hub and chassis, as well as team uniforms and the helmet of four-time world champion Max Verstappen

Compliance expansion and global layout

Gate.io has completed the registration of Virtual Asset Service Provider (VASP) in Argentina and has promoted compliance in Gibraltar, the Bahamas, Hong Kong, Singapore and the Middle East, laying the foundation for global expansion. Expanded compliance operations in Asia and Europe through the acquisition of Coin Master in Asia and Sheer Markets in Cyprus. ​

The Future of Cryptocurrency Exchanges

Looking ahead, the prospects of cryptocurrency exchanges will depend heavily on their ability to adapt to a continuously changing regulatory environment. Exchanges that prioritize compliance may become industry leaders as more countries establish their own regulatory frameworks. The interaction between regulation and innovation will drive the evolution of trading platforms, enabling them to improve security, transparency and user experience. Furthermore, as institutions’ interest in cryptocurrencies increases, regulatory clarity will become the key to attracting traditional investors. In this dynamically changing environment, adaptability will be the key to the success of cryptocurrency exchanges.

●Continue to learn to keep up with regulatory dynamics;

●Innovate services to meet regulatory requirements and user needs;

● Establish partnerships with regulators to ensure better compliance;

●Focus on user experience, retain and attract more customers;

● Monitor global trends and predict regulatory changes

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