Trading Volume Surges 24x, How Binance is Reshaping DEX with Alpha 2.0

The meme coin frenzy, constant rug pulls, and rapidly diminishing token lifespan. This is not happening in 2025, but in 2020. However, the root of the chaos at that time was the crypto world opening the door to decentralization through DeFi. To address this phenomenon, Binance introduced the concept of CeDeFi and launched the precursor to BNB Chain, Binance Smart Chain (BSC).

Currently, the crypto market is more brutal compared to five years ago, gradually turning into a PvP game. In this zero-sum game, players are not thinking about creating value but rather how to profit from other players.

To tackle this, Binance has launched Binance Alpha, a platform focused on discovering early-stage crypto projects with growth potential in the Web3 ecosystem. Some projects will have the opportunity to launch on Binance. Instead of users directly entering the brutal PvP market, Binance takes the lead by leveraging expertise and advanced data analysis to filter out projects with strong community support, market attractiveness growth, and alignment with key crypto ecosystem trends.

With the market and user demands continually evolving, Binance Alpha has seen an upgrade to "Binance Alpha 2.0," propelling crypto towards CeDeFi. Less than 24 hours after the announcement of Binance Alpha 2.0, Dune.com analyst @lz_web3 data shows that on March 18, Binance Wallet's daily on-chain transaction volume reached $90.556 million, accounting for 54.1% of the total crypto wallet track volume on that day, ranking first in the market. The number of active trading users also topped the list with 28,103 users, representing 29.5% of the total active traders in the track.

Just as CZ said in 2020, what Binance needs to become is the industry's underlying infrastructure, like a road you walk on every day but don't need to know who built it.

Originating from BSC

In the early stages of industry development, many users were deterred by high on-chain gas fees and inefficiency. At the same time, issues like liquidity fragmentation and market bubbles indirectly led to retail investors being forced into bag-holding in the secondary market.

Against this backdrop, BSC was born. BSC achieved programmable scalability, compatibility with the ETH ecosystem, native support for cross-chain communication and transactions. Developers can easily migrate apps from ETH to BSC without rewriting the entire source code.

Subsequently, Binance implemented the "Token Canal" plan, organically combining the advantages of a centralized exchange and BSC. Through Binance's secure custody service, various on-chain tokens can be bridged to BSC.

The emergence of BSC has provided the DeFi ecosystem with an efficient, secure, and cost-effective platform, laying a solid foundation for Binance's subsequent CeDeFi layout.

Binance Alpha, Reframing Value Discovery

After the launch of BSC, the market style also switched accordingly. Some players, in pursuit of higher returns, began on-chain arbitrage. KOLs, conspiracy groups, and others entered the scene, intentionally or unintentionally influencing the market.

Against the backdrop of the failure of on-chain value discovery mechanisms, Binance introduced Binance Alpha, a strategic innovation. Binance Alpha integrates project incubation, value discovery, and ecosystem empowerment into one, quietly rewriting the current asset screening rules and opening up a new survival and development path for early-stage projects.

The underlying logic of Binance Alpha reflects its ambition to break the early project survival paradox. High-quality early-stage projects often find themselves in a double bind of information overload and the stringent listing standards of centralized platforms. According to incomplete statistics, pump.fun has issued over 8 million tokens, while less than 0.1% can be listed on top exchanges.

Through the construction of an "Observation Pool" mechanism, Binance Alpha has bridged the gap between project teams and exchanges, preserving the openness of the decentralized market while introducing an evaluation dimension from professional institutions. This model not only provides projects with initial exposure opportunities but also lays a solid foundation for subsequent value realization.

Moreover, Binance Alpha has also reframed value discovery. Traditionally, the listing process on exchanges lags, and by the time a project is approved, its token price has often already been discovered in the market. The Alpha platform introduces a dynamic monitoring system that continuously tracks growth metrics such as code updates, community activity, cross-chain protocol integrations, etc., shifting from result verification to process validation. Additionally, the platform's built-in MEV protection mechanism further eliminates the interference of dark pool trades, technically ensuring the objectivity of evaluations and providing a more scientifically supported digital asset pricing.

Project teams can also choose the Binance Wallet for exclusive TGE, and after participating in this event, their tokens will automatically be included in Binance Alpha. This not only means that the project can gain exposure on the platform but will also showcase its growth potential through Binance Alpha, attracting more investor and user attention. At the same time, the on-chain liquidity support provided by the Binance Wallet creates a favorable market environment for the project's on-chain trading launch, enabling seamless integration and smooth flow of tokens upon release, significantly reducing the security risks and operational friction present in traditional cross-platform operations.

For users, this TGE model has brought more opportunities to reach a real and identity-verified user base. Binance Wallet's large active user base not only provides projects with stable market feedback and initial liquidity but also ensures that through a fair, transparent token distribution mechanism, every user can participate in the project's early growth in a fair environment.

Binance Alpha 2.0, CeDeFi Transaction Operating System

Binance is not satisfied with Binance Alpha and has chosen to launch Alpha 2.0, aiming to break down the barriers between traditional CEX and DEX through technological and product innovation to achieve the CeDeFi vision.

According to incomplete statistics, there is a high loss of assets during asset migration between CEX and DEX, resulting in an annual loss of liquidity value of over billions of dollars. Traditionally, users not only face security risks during cross-chain bridge operations but also need to manually rebalance between multiple platforms. Alpha 2.0 reduces cross-chain friction costs to zero through native account integration technology, directly injecting the hundreds of billions of dollars' worth of liquidity immobilized in CEX into the DEX market, fundamentally solving the liquidity fragmentation problem.

The frequent transfer of funds between traditional CEX accounts in spot, futures, and on-chain wallets has kept asset utilization efficiency low for a long time. Binance Alpha 2.0 allows users to directly use their spot account balance for on-chain transactions, increasing the fund utilization efficiency of a single account several times over.

Binance Alpha 2.0 has achieved a new upgrade of the trading infrastructure. Its core breakthrough lies in building a "CEX account + on-chain identity" where users can trigger smart contracts directly through a Binance account without worrying about mnemonics. Furthermore, Binance Alpha 2.0 has shown forward-looking design in terms of regulation by combining CEX's KYC/AML system with on-chain transaction behavior, creating regulatory transparency.

From Binance Alpha 2.0, it is foreseeable that Binance is attempting to build a complete CeDeFi transaction operating system, allowing users to manage CEX positions, participate in DeFi governance, and even mint NFT assets within the same interface, thus completely erasing the boundaries between traditional finance and the crypto economy. Binance Alpha 2.0 has not only solved the industry's liquidity and fund efficiency problems through technological innovation but also driven a fundamental shift in the cryptographic asset trading model through a series of underlying architecture upgrades and market mechanism restructuring.

When a billion users can participate in the blockchain without needing to understand its principles, perhaps the singularity of the crypto world is quietly approaching. With the increasing network effects generated by this integration, we may see the emergence of a super liquidity pool with a daily transaction volume surpassing trillions, achieving the mainstream adoption and true maturity of the crypto market.