Questions and Problems with Binance Web3 Wallet
Since Binance officially launched the "Web3 Wallet" in the Binance App in November 2023 , this product has sparked a lot of discussion and doubts. On the one hand, as a decentralized wallet launched by a leading exchange, it has attracted much attention; on the other hand, its flaws in user experience and functionality have also been magnified and discussed by the community. The main issues currently criticized by the outside world include:
1. Interface and experience issues : Some users complained that the language of the Binance Web3 wallet interface was confusing (inconsistent switching between Chinese and English) and that the operation was stuck. For example, there was feedback that the simplified Chinese language was set but the wallet displayed English, and the App had to be restarted several times to switch back. Some interactive processes are not intuitive enough, such as the Bitcoin Ordinals "inscription" function, which confuses users - they need to complete the inscription before transferring money, otherwise they may lose assets if they transfer directly. The early version of the wallet had a deep entrance, and you had to switch views on the funds page to find the Web3 wallet, and the overall threshold for getting started was high . These problems have led many users to believe that the Binance Web3 wallet is not mature enough and the experience is slightly rough compared to competing products.
2. Usage threshold and permissions : Binance Web3 wallet must be bound to a Binance exchange account , which means that users must undergo KYC real-name authentication. In contrast, wallets such as OKX can be created and used directly (supporting mnemonic mode) without the need for an exchange account. Although this design ensures compliance, it raises the initial usage threshold, which makes some privacy-conscious users dissatisfied. In addition, some users pointed out that Binance wallet relies on centralized services for on-chain data indexing, resulting in untimely updates of transaction data and the inability to synchronize on-chain status in real time like the OKX wallet.
3. Asset display and support : There are also some cases of insufficient identification in asset management. For example, some people reported that the token details page of Binance Web3 wallet does not display the total supply of tokens, but only displays the upper limit of a single casting, and important information is missing. Another user mentioned that some emerging chains or tokens (such as specific BRC-20 tokens "IP") are not currently supported in Binance wallet, causing users to have to use other platforms to obtain the token as gas in order to participate in related airdrops. Although Binance wallet claims to automatically identify all tokens, the community feels that its progress is slower than that of competitors in terms of new assets and new ecological support.
4. Decentralization and control disputes : Binance Web3 wallet uses MPC technology to relieve users of the burden of managing their own private keys, but it also sparked a discussion on whether it is truly decentralized. Some believe that the wallet is semi-custodial in nature: users cannot obtain the complete private key on their own, and Binance holds some key shards and participates in signing. This brings benefits (forgotten passwords can be restored) but also means that Binance can technically intervene in transaction signatures. In particular, the wallet is bound to a real-name account, and the user's on-chain operations are no longer anonymous, which makes some people in the decentralized community question its "decentralized" purity.
It is worth noting that most of the above problems are concentrated in the early stage of product launch. With version updates and user feedback, the Binance team is also continuously improving. For example, they published FAQs to clarify users' doubts about self-custody and backup, emphasizing that users have control over their wallets (holding two of the three keys). However, compared with competing products, Binance Web3 Wallet still has room for improvement in user reputation, and needs to respond to external doubts with actual performance.
Analysis of the core mechanism of the product: multi-chain support, cross-asset management and ecological integration
Despite some negative feedback, Binance Web3 Wallet has its own characteristics and highlights in its core mechanism, reflecting Binance's idea of building a one-stop multi-chain wallet . The following is a breakdown of its key functions:
1. Multi-chain support and cross-chain asset management : Binance Web3 wallet focuses on multi-chain compatibility , and supports more than 35 blockchain networks at the initial launch. The scope of support continues to expand, covering mainstream EVM chains (Ethereum, BSC, Arbitrum, etc.) and non-EVM chains (Bitcoin, Solana, Aptos, Sui, etc.). The wallet has built-in cross-chain bridging capabilities, and users can transfer assets between different networks without leaving the wallet. For example, by integrating Binance Bridge 2.0 , users can achieve one-click exchange of some assets between multiple chains. Multi-chain support allows users to manage tokens and NFTs scattered across chains in one wallet, making it convenient to manage cross-asset portfolios .
2. Built-in DApp browser and application aggregation : As a Web3 portal, Binance Wallet integrates a rich set of decentralized applications. It provides a DApp list and browser , supports direct connection to DeFi protocols such as Uniswap and PancakeSwap for transactions, pledge lending, and access to NFT markets such as OpenSea. According to Binance official data, Binance Wallet has aggregated hundreds of mainstream DApps and more than 30 NFT market aggregation platforms, covering various applications such as DeFi, GameFi, and SocialFi. Users can enjoy Web3 in one stop in their wallet: for example, cross-chain browsing of multi-market collections in the NFT module, and even using the NFT shopping cart to purchase multiple NFTs at the same time. This built-in application reduces the threshold for users to find and connect to DApps on their own.
3. Linkage with Binance CEX account : Binance Web3 wallet is deeply integrated into Binance App, achieving seamless connection with centralized accounts. Users can transfer funds from Binance exchange account directly to Web3 wallet through one-click transfer function, without the cumbersome withdrawal process. Funds flow between CEX and wallet quickly and without handling fees (internal transfer), greatly reducing friction. This linkage is reflected in the UI. The fund page of Binance App has two tabs, "Fund Account" and "Web3 Wallet", which can quickly switch views. For example, as shown in the figure below, after switching to the "Web3" tab on the fund page , you can see the prompt button "Add funds to Web3 wallet with one click" at the top of the interface. Click it to transfer the main account assets to the on-chain wallet. At the same time, for security reasons, when a user wants to initiate an on-chain transaction (such as Swap or transfer) from a Web3 wallet, he still needs to pass the 2FA and email verification of the original account to ensure that the operator is the account holder. This linkage design opens up the capital flow between CeFi and DeFi, forming a closed transaction loop : users can conveniently buy coins on the exchange, then transfer them to the chain to participate in DeFi, and transfer them back at any time.
4. Deep integration of BNB ecosystem : As part of the Binance ecosystem, Web3 wallet naturally supports and prioritizes the integration of various services on BNB Chain. Through this wallet, users can seamlessly participate in DeFi projects on BSC (such as PancakeSwap), BEP-20 asset management, and new project airdrops on BNB Chain. In terms of Binance ecosystem support, Binance provides wallet users with a wealth of resources: for example, tutorials embedded in Binance Academy to guide newcomers to use wallets and understand blockchain; the Binance community also provides feedback and suggestions on wallet function optimization to achieve product co-creation. The powerful ecological integration makes Binance Wallet a key entry point for the extension of the BNB ecosystem , which is conducive to attracting hundreds of millions of users of the Binance trading platform to enter the decentralized world of BNB Chain.
5. MPC self-custody and compliance path : Binance Web3 wallet uses multi-party computing (MPC) technology to manage private keys, which is a core mechanism. Specifically, the private key generated by the wallet is divided into three shards: one of which is kept by the Binance server (for account recovery), and the other two are controlled by the user (user device + user encrypted backup). Any two shards are required to control the wallet and sign transactions. This architecture achieves a balance between decentralized self-custody and service availability : users do not need to remember mnemonics to enjoy the benefits of self-management of assets, while the key fragments held by Binance can assist in recovering the wallet when the user's device is lost. However, Binance cannot control user assets alone because it only has one fragment, which is not enough to sign transactions. The introduction of MPC also puts Binance Wallet on a compliance-friendly route: since the wallet is bound to a real-name account, the flow of funds on the chain can correspond to the real user, which reduces the risk of anonymity from a regulatory perspective. At the same time, the multi-party signature mechanism naturally has a risk control intervention point-when an abnormal transaction is detected, the system can refuse to sign for the user, thereby protecting the security of the user's assets. These features make Binance Web3 Wallet a new type of wallet that takes into account both decentralized management and compliance requirements , leaving room for future changes in the policy environment.
6. Security functions and risk control : Security is the lifeline of wallet products, and Binance Web3 wallet has built multiple safeguards in this regard. First, the MPC private key splitting itself improves the key security, and a single point of leakage will not lead to the loss of all private keys. Secondly, the wallet has a built-in risk control module : it is connected to Binance's own risk address library to provide early warnings for known fraud addresses; it also integrates malicious contract detection functions to identify potential risks of tokens or contracts in transaction interactions and promptly remind users. Users can also revoke on-chain authorization with one click through the authorization management panel to avoid asset risks caused by long-term authorization. In addition, Binance announced that its Web3 wallet has passed third-party security audits such as SlowMist and CertiK, and the wallet code has also been open sourced to accept community supervision and bug bounties. Official data shows that the wallet adopts the same level of security measures as the exchange's main site, such as two-step verification for APP login and risk control for large transfers. With a multi-pronged approach, Binance hopes that its wallet will reach the top level in the industry in terms of security and provide users with a reliable asset management tool.
In general, Binance Web3 Wallet strives to create a decentralized wallet that is multi-chain compatible, application-rich, secure and compliant through the above mechanisms. It is not only a natural extension of the Binance exchange function, but also breaks through certain limitations of traditional non-custodial wallets in terms of architecture (such as the risk of private key loss, high threshold, etc.). Next, we analyze how these mechanisms are transformed into actual value from the user's perspective, and what benefits users can get from them.
User perspective: security, convenience, closed-loop functionality and airdrop opportunities
From the user's perspective, the value of a wallet is mainly determined by whether it can solve user pain points, improve user experience and create potential profits. The performance of Binance Web3 Wallet in this regard can be summarized as follows:
1. Security: Reduce the risk of private key management and enhance risk control protection. For ordinary users, the biggest nightmare of self-managed wallets is the loss or theft of private keys. After Binance Web3 Wallet adopts MPC technology, users no longer need to remember and properly keep mnemonics, which greatly reduces the possibility of permanent loss of assets due to negligence. Even if the mobile phone is lost, users can restore the wallet through the key sharding backed up in the cloud + Binance custody sharding. This mechanism is equivalent to providing bank-level account recovery services , but still ensures that only the user has the ultimate control. In addition, the built-in risk address warning and malicious contract prompt functions act as a "safety guard" when users accidentally contact suspicious links and phishing websites. For example, when a user authorizes a DApp, the wallet will automatically compare whether the contract is high-risk and issue a warning, thereby preventing common scams. In addition, open source code and audit endorsement have improved transparency, and security has become one of the main selling points of Binance Wallet . For ordinary investors who focus on asset security and lack technical experience, this "official protection + user control" model undoubtedly provides a more secure choice.
2. Convenience: Optimize the operation process and lower the threshold for use. Binance Web3 Wallet focuses on improving several pain points of traditional on-chain wallets, providing users with an excellent ease-of-use experience. First of all, it is a configuration-free network : the new public chain supported will be automatically added, and users do not need to manually enter parameters such as RPC. They can switch to the corresponding chain by clicking, eliminating the cumbersome settings of MetaMask. Secondly, the wallet automatically identifies tokens and displays the balance. After users transfer unpopular tokens, they can see the assets without adding the contract address themselves. This is very friendly to novice users and avoids the dilemma of "not being able to see money" because they do not know how to add tokens. In addition, the Gas fee management problem has also been innovatively solved-Binance Wallet has a built-in "one-click exchange Gas" function, allowing users to directly exchange any tokens already in the wallet for the Gas Token of the target chain. Moreover, according to tests, this exchange transaction can be executed without holding the main network currency of the target chain in advance . The system will automatically complete the exchange and pay Gas, which greatly alleviates the embarrassment of "no Gas and no transfer" when the new chain is first used. For example, if a user only has USDT in his wallet but wants to transfer ETH on the Ethereum chain, he must first obtain a small amount of ETH as Gas. With this function, he can directly use part of USDT to exchange ETH to pay the mining fee, and the whole process can be completed with one click in the wallet. Let's look at the convenience brought by the integration with the Binance account: the quick start without private key allows anyone who can use the Binance App to open a Web3 wallet in a few seconds; the balance of a centralized account can be instantly injected into the Web3 wallet to participate in on-chain investment without waiting for block confirmation. Various optimizations make the user experience of the Binance Web3 wallet very smooth and lower the threshold of Web3. As one review said, the wallet "is more user-friendly and considerate, and is one of the wallets with the best experience at present." For new users who lack on-chain experience, it greatly shortens the learning curve.
3. Functional closed loop: one-stop integration of trading, financial management, and application ecology. With the Binance Web3 wallet, users are equivalent to having a fully functional on-chain financial terminal . It integrates the coin buying, trading, and financial management functions of traditional CEX with the lending, yield farm, and NFT trading of the DeFi world. In the wallet, users can directly swap tokens between DEXs on various chains through the aggregate exchange function (with deep support from Binance and low slippage), or enter the "earn" section to participate in on-chain staking and liquidity mining income. For example, users can trade emerging tokens with Uniswap on Ethereum, and then seamlessly switch to staking BNB on the Binance Smart Chain to earn income, all on the same interface. At the same time, the wallet's DApp browser opens the door to Web3 applications: users can directly connect to popular DeFi protocols (Uniswap, Curve, etc.) and NFT markets to conduct business without tedious imports. For players who like to try various on-chain projects, Binance Wallet provides a unified control panel , eliminating the trouble of frequently switching between different wallets and different browser extensions. It is worth mentioning that the linkage with the Binance exchange account also realizes a closed-loop link between fiat currency, exchange and chain : users can complete the entire process from fiat currency deposits to investing in niche tokens to profit withdrawals within the Binance ecosystem. This closed loop not only ensures the continuity of the user experience, but also reduces the risk of fund security in the middle link (compared to transferring coins to a third-party wallet and then transferring to DEX, the risk of on-chain hackers is higher). In general, from the user's perspective, Binance Web3 Wallet has created a convenient one-stop platform for crypto finance , which not only improves the experience but also enhances user stickiness.
4. Potential benefits: capturing airdrop opportunities and ecological rewards. For many users who are deeply involved in on-chain activities, wallets are not just tools, but also a stepping stone to participate in early projects and obtain airdrop dividends . With its multi-chain support and application integration, Binance Web3 wallet is naturally conducive to users capturing opportunities in this regard. First, it has a built-in test network faucet and task system , which makes it convenient for users to obtain test tokens of each chain and participate in interactions. According to the community, Binance Wallet has regularly launched activities with different public chain themes, integrating multiple DApp interactive tasks in each issue, and after completion, there is a chance to obtain on-chain project airdrops or commemorative NFT rewards. For example, users can obtain official NFTs by completing several operations on the Aptos test network through their wallets, and holding the NFT can also obtain additional rewards in subsequent activities. This one-stop "airdrop" organized by the official organization greatly reduces the threshold for users to find project information themselves. Secondly, using the Binance Web3 wallet itself may also receive ecological incentives. Since Binance hopes to promote the popularization of its wallet, it does not rule out the issuance of benefits to wallet users in the future, such as priority qualifications for airdrops of new projects on the BNB Chain, fee discount coupons, etc. More directly, some popular protocols that have not yet issued coins often use interaction records as the basis for airdrops. Using Binance Wallet can complete these interactions more conveniently, thereby increasing the chance of obtaining airdrops . For example, before the Arbitrum airdrop, many users needed to configure RPC and bridge assets to interact; while Binance Wallet users can meet the interaction conditions earlier and more conveniently because they do not need to configure multiple chains and have a built-in cross-chain bridge. If security and experience are explicit values, then airdrop bonuses are the potential hidden value of holding an excellent wallet. Binance Web3 Wallet helps users lower the threshold for participating in cutting-edge Web3 projects, so that ordinary people also have the opportunity to share in the next round of dividends.
Based on the above four points, Binance Web3 Wallet has shown certain value to users in terms of security, ease of use, functions and benefits: it strives to solve the pain points of novices and provides powerful functions required by advanced players. Of course, the realization of these values also depends on the continuous improvement of the wallet itself and the further improvement of the ecosystem. While understanding the pros and cons of Binance Wallet, we also need to put it in a larger industry context and compare it horizontally with other mainstream wallets to more objectively evaluate its competitiveness.
Horizontal comparison: Binance vs OKX, MetaMask, Bitget core capabilities
The mainstream Web3 wallets on the market include both old decentralized wallets such as MetaMask and up-and-coming exchange-based wallets such as OKX Wallet and Bitget Wallet . As a new entrant, Binance Web3 Wallet needs to catch up with these competitors in terms of functionality and experience. Below we compare Binance Wallet with OKX Wallet, MetaMask, and Bitget Wallet from several key dimensions, including UI/UX, chain support range, usage permissions, security mechanisms, and ecological support:
1. User Interface and Experience (UI/UX) : In terms of interface friendliness, both OKX and Binance's wallets take the easy-to-use route, but the details are different. With its earlier iteration and high interface maturity, OKX Web3 wallet is considered to be very friendly to crypto novices, and the layout of various on-chain functional sections is clear and clear at a glance. It has a unified experience on both mobile and web terminals, supports user-defined interface themes, and has fast loading and transaction response speeds. Since Binance Web3 wallet is directly integrated into the Binance App, its UI style is consistent with that of the exchange, and the overall simplicity and intuitiveness provide tutorials for beginners and step-by-step setup processes. However, the entrance to the Binance wallet is not currently on the homepage, but hidden in the "Funds" page, and needs to be switched manually, which may be because the product is still being gradually improved. Problems such as inconsistent language switching and page freezes in early versions are relatively rare among competing products - OKX and Bitget wallets both support multiple languages such as Chinese and English and switch smoothly. As an old plug-in wallet, MetaMask has been criticized for its mobile experience (early versions were stuck and prone to crashes), but it has improved a lot recently; its interface is relatively professional and not friendly enough for non-technical users. **Bitget Wallet (formerly BitKeep)** has a decent interface, but lacks an independent market/market module. Users cannot browse token prices or trade assets such as Bitcoin inscriptions directly in the wallet, and the experience is slightly fragmented. Overall, OKX is currently slightly better in UI/UX and is considered "silky and smooth". Binance Wallet is catching up and is being optimized. MetaMask is powerful but professional, and novices need to adapt.
2. Multi-chain support range : Multi-chain compatibility is one of the core indicators to measure the strength of a wallet. MetaMask only supports EVM-compatible chains, which means that non-Ethereum chains such as Solana, Aptos, and Bitcoin need to use other wallets. In contrast, exchange-related wallets all take the multi-chain route. OKX Web3 wallet is currently in a leading position-as of the end of 2024, it has supported 100+ blockchain networks , basically covering mainstream public chains and emerging ecosystems, and truly realizing "one warehouse covers all chains". Bitget wallet claims to support more than 100 chains and aggregate hundreds of DEXs, and its compatibility is also very wide. Binance Web3 wallet started a little later, and currently officially disclosed that it supports about 35 public chains and more than 100 DApps . However, with updates and iterations, this number is increasing (some reviews mentioned that Binance wallet has seamlessly switched to heterogeneous chains such as EVM and Solana, and the experience is excellent). In terms of non-EVM chain support, both OKX and Binance have supported the Bitcoin native network and its Ordinals inscription ecosystem, while Bitget wallet's support for the Bitcoin ecosystem is slightly insufficient, and inscription assets cannot be traded directly in the wallet. For example, during the BRC-20 craze, OKX wallet quickly integrated the Bitcoin network and Ordinals, and acquired most of the users in this market. Although Binance wallet supported it a little later, it also launched ORDI and other related asset transactions. In general, in terms of multi-chain support: OKX is the largest and most comprehensive, Bitget is second, Binance is catching up but has covered the mainstream chains, and MetaMask is limited to the Ethereum system. For heavy multi-chain players, the wallets of OKX/Bitget/Binance obviously provide a broader space for development.
3. Usage permissions and account modes : This dimension involves the way to open a wallet account, whether an exchange account is required, and the differences in mnemonic/private key management modes. Traditional wallets such as MetaMask/imToken use a mnemonic self-management mode , where users have full control over their private keys but need to back them up themselves, and no real name is required for registration. The OKX wallet uniquely supports both modes at the same time: users can choose an MPC wallet without a private key or a traditional mnemonic wallet. Regardless of the mode, the OKX wallet does not require an OKX exchange account , and can be used independently by downloading an App or browser plug-in. This is very important for privacy-conscious users. The Binance Web3 wallet must be logged in to a Binance account to enable it. It defaults to the MPC semi-custodial mode and does not provide mnemonics (unless the user uses the emergency export function to retrieve the private key). This means that Binance wallet users have basically undergone KYC real-name verification and are managed by the Binance account system. The situation of the Bitget wallet is similar to OKX. It is used as an independent App and does not need to be bound to a Bitget exchange account; the mode is also MPC custody, and there is no mnemonic. In summary, in terms of usage threshold and permission control : Binance's wallet is strongly bound to the exchange account , which has the advantage of an integrated account system (passwords can be restored through accounts if forgotten), but the disadvantage is the lack of anonymity and independence. OKX/Bitget is more open, and users can use them as completely independent wallets, and it doesn't matter if they don't want to register for an exchange. In this regard, OKX has the best flexibility , giving users more choices; Binance has taken a route of strengthening account stickiness and compliance, which has its own advantages and disadvantages.
4. Security mechanism and risk control : In terms of security, various wallets have converged in recent years, and all have introduced MPC technology and intelligent risk control, forming an "arms race" situation. The security features of Binance Web3 wallet have been detailed in the previous article: MPC private key sharding, proprietary risk control library, malicious contract interception, etc. OKX wallet also attaches great importance to security. It is reported that it has not only passed the private key security audit of SlowMist, but also integrated the on-chain transaction monitoring system "KYT Sky Eye", with more than 200 million risk address data built-in, and a warning will pop up before the user transfers to a dangerous address. OKX wallet has also launched a head-to-tail similar address detection function to prevent hackers from using similar addresses to confuse users to transfer to the wrong account. In terms of user identity protection, OKX allows users to choose to keep the mnemonic or hand it over to MPC, so the degree of decentralization is higher . Bitget wallet adopts MPC and has established a "GetShield" security system with functions such as token contract risk scanning, authorization detection and anti-phishing. It is worth mentioning that Bitget and the exchange have launched a $300 million risk protection fund . In case of hacker attacks on user assets, users can apply for compensation. MetaMask mainly relies on open source code audits and browser sandbox environments for security. It does not have so many built-in active protection mechanisms, but rather ensures security through education (such as phishing website warnings) and integration with hardware wallets. Comprehensive comparison: In terms of active protection , OKX, Binance, and Bitget are on par with each other, all of which have introduced address blacklists and phishing detection; in terms of recovery mechanisms , OKX/Bitget provides cloud backup + email verification (similar to Binance's cloud backup, but without an account middle office); in terms of compensation for extreme situations , Bitget has a fund while Binance/OKX has no such public commitment. Overall, the three major exchange wallets have a high level of security and are constantly iterating new features. Binance emphasizes **"users fully control their assets"** and allows the export of private keys, which has done work in building user trust; OKX is known for its technical strength and has brought exchange-level security to the chain; Bitget provides real money insurance protection. Security is not a shortcoming , and users can choose based on their own trust.
5. Ecosystem support : This refers to both the ecological resources behind the wallet and the importance of the wallet to the platform strategy. Binance Web3 wallet benefits from Binance's huge user base and BNB Chain ecosystem. Hundreds of millions of registered Binance users provide a potential growth pool for the wallet. According to statistics, users have created millions of Web3 wallets within a few weeks of going online. Binance also encourages users to use Web3 wallets through activities such as Launchpad and Launchpool. For example, a recent airdrop of a new project requires NFTs to be collected in Binance wallets. Binance's brand and global compliance efforts also endorse the wallet-many conservative investors trust products launched by large platforms more. OKX wallet is backed by OKX exchange and OKX Chain public chain, and has a good reputation in the DeFi circle. The OKX team is very active in embracing the new ecology: whether it is the early DeFi "liquidity mining" or the Bitcoin inscription frenzy in 2023, OKX has taken the lead in supporting it to quickly expand its market share. Data shows that when Ordinals was the hottest, OKX wallet obtained 84%+ of the transaction share, far exceeding other wallets. This reflects OKX's strength in community trend perception and ecological support - its wallet integrates almost all the protocols of DeFiLlama Top100 and thousands of DApps, which can be said to be the most complete ecosystem . The ecological support of Bitget wallet mainly comes from the Asian market and multi-chain community, especially the original BitKeep user base. In recent years, Bitget Exchange has focused on spot and derivatives, and is also importing traffic to wallets to support it as a new growth point for its business. Behind MetaMask is the accumulation of ConsenSys and Ethereum developer community for many years. Although it does not have the user diversion of exchanges, it wins in industry standard status and extensive third-party integration (many DApps only support MetaMask connection by default). Therefore, in terms of ecological support, it can be said that Binance Wallet has the largest user plate and brand appeal, OKX Wallet has advanced layout of technology iteration and rookie ecology, Bitget Wallet is backed by the resources of the upstarts of the exchange and should not be underestimated, and MetaMask has the first-mover advantage and ecological foundation. For users, choosing an exchange-based wallet often means enjoying some platform benefits and getting new features faster, while choosing an independent wallet means more neutrality and privacy. The "secret battle" between Binance and OKX in this regard is also reflected in the differences in their respective strategic considerations, which we will further analyze in the next section.
In general, Binance Web3 Wallet still lags behind OKX Wallet and Bitget Wallet in terms of functional perfection (especially in terms of the number of chains supported and the richness of DApps, OKX is significantly stronger), but with Binance's resource advantages, it has the potential to catch up. MetaMask is a completely different positioning (tool-based wallet), and the two are more complementary rather than directly competitive. A one-sentence summary of the current competitive landscape is: "OKX is leading in all functions, Bitget is closely behind, and Binance is catching up with its resources." Whether Binance can achieve a curve overtaking in the Web3 wallet track with its Wallet depends on the execution of the next strategy.
Binance's strategic considerations for deploying Web3 wallets
Why did Binance invest resources to build such a Web3 independent wallet? This reflects the general trend of the evolution of exchange business and Binance's own strategic intentions. Combining various information, we can interpret Binance's deep considerations for launching a Web3 wallet from the following perspectives:
(1) User retention and ecological closed loop: Retaining users is one of the direct motivations for exchanges to launch their own wallets. In the past, if Binance users wanted to participate in DeFi or new projects on the chain, they often had to withdraw their assets to external wallets such as MetaMask and Trust Wallet, and funds and traffic flowed out of the Binance system. In the long run, users may gradually move away from the exchange. The introduction of the built-in Web3 wallet is precisely to prevent this loss . The user's on-chain needs can be met within the Binance platform, forming a closed-loop ecosystem of exchange-wallet-on-chain applications . As Binance officials said, the Web3 wallet is "a bridge connecting CeFi and DeFi", lowering the threshold for users to fully manage their assets. Through this bridge, Binance hopes that users do not need to leave their own platform, whether they are centralized trading or decentralized investment. This not only enhances user stickiness, but also allows Binance to continuously track users' on-chain behavior preferences, thereby providing more targeted services. This closed-loop strategy has been proven to be effective by other companies: since OKX launched its Web3 wallet, many users have returned to OKX to earn coins or manage their finances after trading, forming a virtuous cycle. Similarly, Binance does not want to hand over DeFi traffic to others, so launching its own wallet is an inevitable choice.
(2) Create a complete business chain of trading + investment: Binance Web3 wallet also helps to achieve a closed-loop transaction and increase transaction volume. Since 2024, the boundaries between centralized exchanges and decentralized trading protocols have become increasingly blurred, and many exchanges have begun to provide DEX aggregation and on-chain trading services. Binance Wallet is the carrier of these functions. Through the Swap/Bridge function in the wallet, Binance is equivalent to taking control of a part of the on-chain transaction volume. For example, in March this year, when OKX suspended the DEX aggregation service of its wallet due to regulatory reasons, a large number of users turned to Binance Wallet for on-chain transactions. As a result, the decentralized transaction volume of Binance Wallet surged that day, and once occupied 54.1% of the market share. According to statistics, on March 18, 2025 alone, Binance Web3 Wallet brokered a transaction volume of US$90.556 million , with 28,103 active users, accounting for nearly 30% of all active users of crypto wallets during the same period. This battle example proves that Binance has completed the flow from CEX to DEX through Wallet: when friendly companies fail to meet the requirements, they immediately attract users with incentives such as zero fees and trading rewards. In the long run, Binance can use the aggregator and bridge functions of the wallet to provide users with cross-market arbitrage and one-stop trading services, and obtain additional handling fee income and liquidity income. In addition, Wallet also synergizes with other products of Binance Exchange-for example, the Alpha function launched by Binance directly integrates some high-quality projects on the chain, allowing the wallet and the exchange to form front-end and back-end cooperation, further consolidating the closed loop of transactions. In short, the Web3 wallet carries Binance's ambition to conquer the field of decentralized transactions and is a bridgehead for its trading business to expand on the chain.
(3) Brand extension and innovative image: For industry giants like Binance, it is also crucial to embrace new trends in a timely manner and maintain a leading image in technology. The launch of the Web3 wallet can show the outside world Binance's presence and control in the DeFi wave. After all, Binance acquired Trust Wallet as early as 2018, but TrustWallet has been mediocre in recent years and is regarded by the outside world as an accessory to Binance's facade. On the other hand, competitors such as OKX are making great strides in Web3 wallets, and Coinbase also has its own wallet and browser extension. If Binance does not take action, it will inevitably be suspected of "technological conservatism and missing out on innovation." Now that Binance has officially launched the Web3 Wallet, it shows its determination to further transform into a Web3 infrastructure provider . This will help consolidate Binance's leadership in the community and strengthen the brand recognition that "Binance is not only an exchange, but also a leader in the Web3 ecosystem." At the same time, by promoting the wallet's advanced technology (MPC, multi-chain, multi-function), Binance conveys to users a positive image of embracing innovation and putting users first. This is beneficial for enhancing user trust and offsetting regulatory shadows. Binance's 2023 year-end report also emphasized that the company improved the accessibility of Web3 products and focused on user experience that year, and the number of Web3 users and products grew by 30%. These data highlight Binance's investment in the Web3 field, and also indicate that the Web3 wallet will become one of the growth stories of the Binance brand in the next stage.
(4) Promoting the prosperity of the BNB ecosystem: The strategic value of the Binance wallet is also reflected in its contribution to the BNB Chain ecosystem. As a public chain led by Binance, if BNB Chain can import a large number of users through the wallet, it will undoubtedly prosper the applications and token economy on the entire chain. Binance CEO Changpeng Zhao (CZ) once said that one of the important goals of the Web3 wallet is to expand the user scale of the BNB chain . Binance has a large existing user base and fiat currency entry. Through the wallet, these CeFi users can be guided to experience DeFi, games, etc. on the BNB Chain, thereby bringing real traffic and transactions to the BNB chain. As the official claim when this wallet was released: "It will bring an additional billion users to Web3" - although it is a grand vision, it also reflects Binance's ambition to significantly expand the BNB ecosystem with its own influence. In addition, the wallet's own interaction on the BNB Chain (such as wallet users performing on-chain swaps and participating in BNB staking) will also increase the demand and usage of BNB, supporting the value of the BNB token. It is foreseeable that Binance may further promote the circulation of BNB in Web3 by providing exclusive BNB rights through the wallet (for example, holding BNB in the wallet has a higher probability of airdrops or fee reductions). In short, the Binance Web3 wallet is a key "tentacle" for the outward expansion of the BNB ecosystem. It connects hundreds of millions of CeFi users and rich on-chain applications. The chemical reaction generated by the fusion of the two may become a new source of competitive advantage for Binance.
(5) Comply with regulation and compliance layout: In the past two years, the regulation of the crypto industry has become increasingly strict, especially for the risks of money laundering and illegal financing in the decentralized field, and regulators in various countries have frequently spoken out. In this context, the Web3 wallet launched by Binance has taken a "compliance-friendly" decentralized wallet route: all users are authenticated with real names, and on-chain transactions can be traced. This design may be Binance's early layout to cope with the uncertainty of future regulatory requirements. Once regulators require exchanges to take responsibility for decentralized businesses within their ecosystems, Binance's wallet model is obviously more reassuring - at least it can be audited and traceable (for example, it can cooperate in investigating the actual user identity of a wallet address). In contrast, completely anonymous external wallets make it difficult for regulators to start. It can be said that Binance's Web3 wallet attempts to find a balance between compliance and decentralization , setting a possible paradigm for the industry. This may become the difference between Binance and its competitors in the future: when OKX and others choose to provide more anonymity and privacy on their wallets, Binance may use compliance to impress institutional users who are cautiously watching due to regulatory pressure. In addition, Binance's wallet is designed with MPC control rights, and has the ability to not cooperate with signatures when illegal activities are discovered, thereby freezing suspicious funds , which is also a function that meets regulatory expectations. Of course, how to ensure the freedom of user property while satisfying supervision is a delicate issue. Binance's wallet currently tends to protect users (because users have control over two fragments). But it is undeniable that actively embracing supervision has become Binance's corporate strategy-they reached a settlement with US regulators in 2023 and emphasized compliance. Web3 wallet is a product of the "gray area", and Binance chooses to operate in a whiter way, which reflects its desire to reduce policy risks and open up more compliant business possibilities .
(6) Data value and user portrait: From a business perspective, own wallets are still an important data entry point. Through Binance Web3 Wallet, the platform can have a more comprehensive understanding of users' on-chain investment behavior and preferences. For example, which DeFi protocols do users often use and which types of chains do they prefer? These data are of great value to Binance in optimizing products and formulating marketing strategies. In the past, these behaviors occurred in external wallets, which Binance could not reach; now that users use Binance Wallet, every move can be traced. Based on these data, Binance can provide users with personalized recommendations (for example, recommending related tokens on the exchange's main site), or push financial products after discovering that users have made large on-chain profits, thereby achieving cross-selling . Data can also help Binance identify high-value user groups and focus on maintenance. In short, mastering on-chain data is equivalent to mastering a more complete user portrait . This is a typical Internet strategy: try to keep users in their own "walled garden" to consume and generate activities in order to obtain a 360-degree data view. Binance Web3 Wallet is the product of Binance's expansion of the walled garden from CeFi to DeFi. Once this model is implemented, Binance will be ahead of its competitors in terms of user insights and will be more comfortable with traffic monetization . For example, in the future, it may launch advertisements or recommendations in the Wallet to provide targeted marketing for project parties - after all, Binance wallet users are all real-name users, and the conversion rate will be higher. All of this is based on the premise that the number of wallet users is large enough. The good news is that Binance has accumulated millions of wallet users shortly after its launch by relying on the power of its platform, indicating that a data gold mine is being formed.
In summary, Binance's strategic goal of building a Web3 wallet can be summarized as: "Do not let DeFi's incremental users fall into the hands of others, and connect CeFi with the new world of DeFi." By improving retention, improving the closed loop, shaping an innovative image, expanding the ecosystem, complying with regulations in advance, and mastering data, Binance hopes to take the initiative in the next round of industry competition. As a certain media commented: "Binance's launch of the Web3 wallet is not only a response to user needs, but also an inevitable choice for exchanges to enter the Web3 track."
User data and market trends
When analyzing the performance of Binance Web3 Wallet, we should also refer to some objective data indicators , including user scale, on-chain interaction frequency, and market share trends. These data help evaluate the current competitive position and development prospects of Binance Wallet:
1. Growth in the number of users : Binance Wallet has seen rapid growth in the number of users since its launch. Officials disclosed that millions of wallets have been created within just a few weeks of its launch. BitEagle News published an article on Binance Square stating that the number of new users exceeded 1 million in less than a month, reflecting the astonishing speed of user adoption. As of the end of 2023, Binance reported that the number of users and usage of its various Web3 products (including wallets) increased by 30% year-on-year. It can be seen that with the help of Binance's main platform traffic, Web3 wallets have achieved rapid growth. This is something that many independent wallets cannot achieve. However, it should be noted that creating a wallet does not mean continuous activity. How to convert registered users into monthly and weekly active users still tests product stickiness.
2. On-chain interaction and activity : According to statistics from on-chain data platforms such as Dune Analytics, the overall number of active users and transaction volume of decentralized wallets showed an upward trend from the end of 2023 to the beginning of 2024. In particular, starting from October 2023 , as the market rebounded, the on-chain interaction volume of major wallets increased significantly. This period was also when Binance Web3 Wallet was launched and gradually improved. In terms of market share , the leading advantage of the traditional overlord MetaMask was gradually eroded in the second half of 2023: before May, MetaMask once dominated, followed by Bitget Wallet; but since May 2023, wallets such as OKX, Bitget, and Trust Wallet have grown rapidly, and MetaMask's share has been squeezed. By around April 2024 , the number of active traders and transaction volume of OKX wallets had come from behind and maintained a significant lead. Due to its late launch time, Binance Web3 Wallet has a small share in the market statistics in 2023. But after entering 2024, its curve began to rise, especially during Q1-Q2 of 2024 , when Binance attracted many users through a series of updates and marketing. A landmark event was the transfer caused by the suspension of OKX DEX in March 2025. At its peak, Binance Wallet accounted for more than half of the DEX traffic in a day. There are also data showing that in the craze of BRC-20 inscription transactions , OKX Wallet was far ahead, and Binance followed closely to launch related support and get a share of the pie. For example, as of mid-November 2023, OKX Wallet accounted for 84.3% of the Ordinals trading market, and the second place Unisat 14.7%. Binance Wallet had just entered the field at that time and had not yet entered the top two. However, it can be expected that as Binance Wallet subsequently supports more popular ecosystems (such as Layer2, ZK Rollup, etc.) and launches incentive activities, its active share will continue to increase.
3. App downloads and reviews : Judging from the feedback from the app store (taking Google Play as an example), the downloads of the Binance main app have exceeded 50 million times. Since the Web3 wallet is a built-in function, there is no separate App data. However, Binance mentioned during the promotion that it may launch an independent Web3 wallet application or browser extension in the future. If it is launched independently, its downloads and user reviews will become direct measurement indicators. At present, the user rating of Binance wallet in the Binance App is similar to the overall Binance App evaluation. Users mainly complain about interface details, bugs, etc., and the overall function has been recognized to a certain extent. On the other hand, OKX, their Web3 wallet has an independent App and is also embedded in the OKX exchange App. Both sides have accumulated considerable downloads and user reviews. Binance will also learn from this full-platform penetration strategy.
4. Market share and industry status : Combining the above data, we can outline the current market landscape of several wallets: MetaMask still has the largest cumulative user base (21 million+ monthly active users), but the growth rate has slowed down; OKX wallet has been a latecomer in the past year with its improved functions and hot spot tracking, and its activity and transaction volume market share are among the best; Bitget/BitKeep wallets have a place in the Southeast Asian market; Binance Web3 wallet , as a rising star, has quickly entered the mainstream camp with Binance resources. It is currently in the second echelon equivalent to Trust Wallet, Coinbase Wallet, etc., and has huge potential for growth. It is particularly noteworthy that the exchange-based wallets as a whole are squeezing the living space of independent wallets-after May 2023, the combined share of OKX, Binance, Bitget, etc. continues to expand, and MetaMask has changed from "one dominant company" to "a group of heroes". This shows that users are beginning to prefer one-stop solutions provided by exchanges, and trust and convenience are key factors. As the world's largest exchange, Binance's wallet is expected to catch up with OKX and Bitget in terms of functionality. It is not impossible for Binance to gain a market share that matches the exchange's status by relying on its brand appeal.
In general, the current data performance of Binance Web3 Wallet confirms its value : the rapid growth in the number of users shows that the market has a strong demand for such products. Binance has successfully retained some wallet users who should have flowed to third parties through the wallet; at the same time, in the fierce Web3 wallet race, Binance Wallet has gained a firm foothold and started to compete for market share. Of course, it still takes time and product development to become a leader. The future data trend is worth continuous observation, such as whether the monthly active users can approach the level of MetaMask, whether the transaction volume can compete with OKX, and so on. But at least now, Binance Web3 Wallet has proved its potential with data.
Conclusion: Traffic entrance for BNB ecosystem extension and new threshold for Web3
As a key link in Binance's ecological layout, the launch of Binance Web3 wallet is not only a move to comply with the industry's DeFi wave, but also a strategic choice to consolidate its own moat. From the above analysis, we can see that this wallet combines the characteristics of decentralization and semi-custody in its technical architecture , strives to be easy to use and cover multi-chain needs in product functions , and assumes the important task of connecting CeFi and DeFi traffic in strategic role . Although it experienced some doubts and running-in in the early stage, the real value it shows is gradually emerging:
1. Internally, Binance Web3 wallet has become an extension of the BNB ecosystem and a functional complement for the Binance platform. It connects the originally separated centralized trading and on-chain application worlds, opening the door to Web3 for hundreds of millions of Binance users. It can be said that it is an entry-level entrance for many traditional Binance users to enter DeFi, lowering the threshold for using Web3. This helps Binance consolidate its user base, extend the user life cycle, and convert part of the Web3 dividends into its own.
2. Externally, Binance Web3 wallet has become a reverse traffic aggregation channel . On the one hand, it absorbs on-chain transaction volume through its own aggregator, bridge and other functions, serving DeFi users who are more willing to trust large platforms; on the other hand, it is good at KYC and security, attracting some user groups who are not confident about third-party wallets. It can even be said that Binance wallet has redefined the paradigm of exchange wallets to a certain extent: it must have a decentralized soul and a compliant and secure background. This positioning makes it unique in the fierce competition among competitors.
3. From an industry perspective, the "wallet war" between Binance and OKX indicates that the competition for DeFi traffic among CeFi platforms will become the norm. Users ultimately benefit from better products and services, but they also need to make a trade-off between decentralization and convenience. Binance Web3 wallet represents a compromise solution. Whether it can have the last laugh in the future depends on whether it can continue to meet user demands and take into account regulatory requirements. If Binance solves the current interface and support issues in the iteration, it is entirely possible that it will catch up with the resource advantages.
In general, Binance Web3 Wallet is no longer an optional accessory, but an important piece of the puzzle in Binance's grand strategy. It demonstrates real user value: safer, more convenient and contains profit opportunities; it also bravely responds to external doubts: proves its potential through data and function upgrades. Of course, challenges still exist - such as how to balance the centralization concerns brought about by semi-custody, how to strike a balance between privacy and compliance, etc. The answers to these questions require Binance to continue to explore in practice.
Looking ahead, we have reason to believe that as Binance Web3 Wallet becomes more and more functional, it is expected to become the "super app" of the Web3 world : it is not only a portal for hundreds of millions of users to first touch the Web 3.0, but also a convenient tool for veteran players to manage multi-chain assets, and a bridgehead for CeFi giants to open up new blue oceans. As the industry commented: "To guide CeFi users to DeFi, and then feed back the results of DeFi to CeFi, this may be the ultimate mission of Binance Wallet." Whether Binance Web3 Wallet can take on this mission and win in the competition and cooperation with competitors, we will wait and see.
References:
1. User feedback on issues such as Binance Web3 wallet interface language and data synchronization
2. Binance Web3 wallet has better features than MetaMask (automatically adding networks, token display, built-in cross-chain bridge, etc.)
3. Introduction to Binance Web3 Wallet Supporting 60+ Blockchains and NFT Market Aggregation
4.BlockBeats’ evaluation of Binance Web3 wallet test (MPC mnemonic-free design, cumbersome user entry, overlapping with DeFi wallet functions)
5. Binance official blog's description of Web3 wallet architecture (MPC three-shard, autonomous control, exportable private key)
6. Comparison of the security mechanisms and on-chain richness of multiple Web3 wallets by Feixiaohao (MPC and risk control functions of OKX/Binance/Bitget wallets)
7. Aicin’s comparison of OKX and Binance Web3 wallet ecosystem progress (OKX integrates 70+ chains and Ordinals leads, accounting for 84.3% of the inscription market)
8. ChainCatcher’s analysis of the exchange wallet war (user activity data changes, OKX’s market share grabbing, MetaMask’s share declining)
9.CCN reported that Binance Wallet once occupied 54.1% of decentralized transactions in March 2025, with a transaction volume of $90.55 million
10. Binance officially announced the launch of the Web3 wallet press release (emphasizing lowering the threshold, MPC does not require mnemonics, security, and CZ’s statement on the positioning of the wallet)
