Binance's dominance as the leading Centralized exchange hit a wall in the final quarter of 2023, after being caught up in one of the biggest lawsuits the crypto industry had ever seen.
At the end of the day, Binance had to pay a heavy $4.3 billion fine to the US Commodity and Futures Trading Commission (CFTC), under anti-money laundering (AML) charges.
Binance's dominance declined heavily following the ordeal, and all hope seemed lost.
However, Binance appears to be bouncing back and is starting to reclaim some of its lost glory in terms of market dominance.
Can some of this success spill into BNB?
On 21 November last year, Binance announced that it had settled with the U.S. authorities, in a bid to end the criminal investigation against it, as well as the civil regulatory enforcement actions leveled against it by agencies like the CFTC and the SEC.
At the end of the line, the settlement clause had a $4.3 billion fine attached to it, which Binance had to pay to several government agencies like the Treasury Department, the CFTC and the SEC.
Furthermore, Binance also had to implement a compliance programme that involved hiring a chief compliance officer, conducting independent audits, and cooperating with US regulators on future investigations.
Furthermore, the former CEO, Changpeng Zhao had to step down in October 2023, before paying another hefty fine from his personal fortune.
These legal hurdles presented several issues for Binance including massive fund outflows, a decline in its market share, as well as a complete exit from the US market.
However, two months later, things are starting to come back to normal.
According to a recent insight piece from Kaiko, Binance is starting to bounce back.
The leading CEX's market share increased to around 49% in January alone, around two months after the messy legal battle with the CFTC.
This shows that Binance is coming back stronger, after dropping to less than 35%, which was its lowest point in years, according to data from CCData.
These signs of growth become even clearer, considering how Binance claimed that it added an impressive 40 million new users in 2023 alone (despite the lawsuit).
As noted by the exchange, this 40 million user addition contributes as much as a 30% increase from 2022.
BNB has been trading in a range between $337 and $202 since breaking below $337 on 13 May 2022.
The cryptocurrency has tried for more than 18 months to get back above the $337 $340 zone, as shown above.
However, according to the daily chart, the latest rejection from $337 has put BNB into a smaller range between $285 and $337.
This means that the bulls now have an opportunity to push the cryptocurrency into a rebound from here, as well as a possible break above the $337 zone.
This outlook remains valid on the cryptocurrency, as long as we do not see another break below $285.
If the bulls fully capitalize on this opportunity, we are bound to see a possible rally, retest and break above $337, with a potential price target of $460 or higher.
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