Questions and Issues Regarding Binance Web3 Wallet

Since the official launch of the "Web3 Wallet" within the Binance App in November 2023, this product has sparked considerable discussion and skepticism. On one hand, as a decentralized wallet launched by a leading exchange, it has attracted significant attention; on the other hand, its flaws in user experience and functionality have been amplified by the community. The main issues criticized by the public include:

1. Interface and Experience Issues: Some users have complained about the confusing interface language of the Binance Web3 Wallet (inconsistent switching between Chinese and English) and operational lag. For example, there have been reports of users setting Simplified Chinese but entering the wallet only to see English, requiring multiple app restarts to switch back. Some interaction processes are also not intuitive, such as the Bitcoin Ordinals "inscription" feature, which confuses users—requiring them to complete the inscription before transferring, or they risk losing assets if they attempt to transfer directly. In earlier versions, the wallet entry was buried deep, requiring users to switch views on the funds page to find the Web3 wallet, resulting in a relatively high entry barrier. These issues have led many users to believe that the Binance Web3 Wallet is not yet mature, with a user experience that appears somewhat rough compared to competitors.

2. Usage Barriers and Permissions: The Binance Web3 Wallet must be linked to a Binance exchange account for use, meaning users must undergo KYC verification. In contrast, wallets like OKX allow direct creation and use (supporting mnemonic mode) without needing an exchange account. While this design ensures compliance, it raises the initial usage barrier, leaving some privacy-conscious users dissatisfied. Additionally, some users have pointed out that the Binance wallet relies on centralized services for on-chain data indexing, resulting in delayed transaction data updates, unlike the OKX wallet, which can synchronize on-chain status in real-time.

3. Asset Display and Support: There have also been some insufficient recognition issues in asset management. For instance, some users reported that the token detail page of the Binance Web3 Wallet does not display the total supply of tokens, only showing the single minting limit, which omits important information. Other users mentioned that certain emerging chains or tokens (such as specific BRC-20 tokens like "IP") are not currently supported in the Binance wallet, forcing users to rely on other platforms to obtain these tokens for gas to participate in related airdrops. Although the Binance wallet claims to automatically recognize all tokens, the community feels its progress in supporting new assets and ecosystems is slower than that of competitors.

4. Decentralization and Control Controversy: The Binance Web3 Wallet uses MPC technology to relieve users of the burden of managing private keys, but this has sparked discussions about whether it is truly decentralized. Some argue that the wallet is essentially semi-custodial: users cannot access the complete private key themselves, as Binance holds part of the key shards and participates in signing. This brings benefits (password recovery) but also means that Binance can technically intervene in transaction signing. Especially with the wallet linked to a real-name account, users' on-chain operations are no longer anonymous, leading some in decentralized communities to question its "decentralization" purity.

It is worth noting that most of the above issues are concentrated in the early stages of the product launch. With version updates and user feedback, the Binance team is continuously improving. For example, they have released a FAQ to clarify users' concerns about self-custody and backup, emphasizing that users have control over their wallets (holding two of the three keys). However, compared to competitors, the Binance Web3 Wallet still has room for improvement in user reputation and needs to respond to external skepticism with actual performance.

Core Mechanism Analysis: Multi-Chain Support, Cross-Asset Management, and Ecosystem Integration

Despite some negative feedback, the Binance Web3 Wallet has its unique features and highlights in core mechanisms, reflecting Binance's vision of creating a one-stop multi-chain wallet. Here is a breakdown of its key functionalities:

1. Multi-Chain Support and Cross-Chain Asset Management: The Binance Web3 Wallet focuses on multi-chain compatibility, supporting over 35 blockchain networks since its launch. The range of supported networks continues to expand, covering mainstream EVM chains (Ethereum, BSC, Arbitrum, etc.) as well as non-EVM chains (Bitcoin, Solana, Aptos, Sui, etc.). The wallet has built-in cross-chain bridging capabilities, allowing users to transfer assets between different networks without leaving the wallet. For example, by integrating Binance Bridge 2.0, users can achieve one-click swaps of certain assets across multiple chains. Multi-chain support enables users to manage tokens and NFTs scattered across various chains within a single wallet, facilitating cross-asset portfolio management.

2. Built-in DApp Browser and Application Aggregation: As a Web3 portal, the Binance wallet integrates a wealth of decentralized applications. It provides a DApp list and browser, supporting direct connections to DeFi protocols like Uniswap and PancakeSwap for trading, staking, and lending, as well as accessing NFT markets like OpenSea. According to official data from Binance, the wallet has aggregated hundreds of mainstream DApps, with over 30 NFT market aggregation platforms covering various applications such as DeFi, GameFi, and SocialFi. Users can seamlessly explore Web3 within the wallet: for example, browsing multi-market collections in the NFT module across chains, or even using an NFT shopping cart to purchase multiple NFTs simultaneously. This built-in application reduces the barrier for users to find and connect to DApps.

3. Integration with Binance CEX Accounts: The Binance Web3 Wallet is deeply integrated within the Binance App, achieving seamless connectivity with centralized accounts. Users can transfer funds directly from their Binance exchange accounts to the Web3 wallet through a one-click transfer feature, eliminating cumbersome withdrawal processes. Funds flow quickly and without fees (for internal transfers) between the CEX and the wallet, significantly reducing friction. This integration is reflected in the UI, where the funds page of the Binance App has two tabs: "Funds Account" and "Web3 Wallet," allowing for quick view switching. For example, as shown in the image below, after switching to the "Web3" tab on the funds page, users can see a prompt button at the top to "Add funds to Web3 wallet with one click," allowing them to transfer main account assets to the on-chain wallet. Additionally, for security reasons, when users initiate on-chain transactions (such as swaps or transfers) from the Web3 wallet, they still need to go through 2FA and email verification from the original account to ensure that the operation is performed by the account holder. This design connects CeFi and DeFi fund flows, forming a transaction loop: users can easily buy coins on the exchange, transfer them to participate in DeFi, and return at any time.

4. Deep Integration with the BNB Ecosystem: As part of the Binance ecosystem, the Web3 wallet naturally supports and prioritizes the integration of various services on the BNB Chain. Users can seamlessly participate in DeFi projects on BSC (like PancakeSwap), manage BEP-20 assets, and access new project airdrops on the BNB Chain through this wallet. In terms of support within the Binance ecosystem, Binance provides wallet users with abundant resources: for example, embedding Binance Academy tutorials to guide newcomers on how to use the wallet and understand blockchain; the Binance community also provides feedback and suggestions for optimizing wallet functions, achieving product co-creation. This strong ecosystem integration makes the Binance wallet a key entry point for the extension of the BNB ecosystem, helping to attract millions of users from the Binance trading platform into the decentralized world of the BNB Chain.

5. MPC Self-Custody and Compliance Pathways: The Binance Web3 Wallet employs Multi-Party Computation (MPC) technology to manage private keys, which is a core mechanism. Specifically, the private keys generated by the wallet are divided into three shards: one shard is stored by Binance servers (for account recovery), while the other two are controlled by the user (user device + user encrypted backup). Any two shards are needed 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 mnemonic phrases while enjoying the benefits of self-managing their assets, while the key shard held by Binance can assist in recovering the wallet if the user's device is lost. However, Binance cannot independently control user assets, as it only has one shard, which is insufficient to sign transactions. The introduction of MPC also allows the Binance wallet to adopt a *compliance-friendly* approach: since the wallet is linked to a real-name account, on-chain fund flows can be traced back to real users, reducing anonymity risks from a regulatory perspective. Additionally, the multi-signature mechanism inherently provides risk control intervention points—when abnormal transactions are detected, the system can refuse to sign for the user, thereby protecting user asset security. These features make the Binance Web3 Wallet a new type of wallet that balances decentralized management and compliance requirements, leaving room for future policy changes.

6. Security Features and Risk Control: Security is the lifeline of wallet products, and the Binance Web3 Wallet has built multiple layers of protection in this regard. First, the MPC private key splitting itself enhances key security, as a single point of leakage will not result in the complete loss of the private key. Second, the wallet has a built-in risk control module: it connects to Binance's own risk address database, providing warnings for known scam addresses; it also integrates malicious contract detection features to identify potential risks in token or contract interactions during transactions and promptly alert users. Users can also use the authorization management panel to revoke on-chain authorizations with one click, avoiding asset risks from long-term authorizations. Additionally, Binance has announced that its Web3 wallet has passed third-party security audits from SlowMist, CertiK, etc., and the wallet code has been open-sourced, allowing for community oversight and bug bounties. Official data shows that the wallet employs security measures on par with the main exchange site, such as two-step verification for app logins and risk control for large transfers. Through these comprehensive measures, Binance aims for its wallet to reach top-tier security standards in the industry, providing users with a reliable asset management tool.

In summary, the Binance Web3 Wallet aims to create a multi-chain compatible, application-rich, secure, and compliant decentralized wallet through the above mechanisms. It is a natural extension of the Binance exchange's functionalities while also breaking through certain limitations of traditional non-custodial wallets (such as the risk of losing private keys and high entry barriers). Next, we will analyze how these mechanisms translate into actual value from the user's perspective and what benefits users can gain from them.

User Perspective: Security, Convenience, Functional Closure, and Airdrop Opportunities

From the user's perspective, evaluating the value of a wallet mainly depends on whether it can address user pain points, enhance the user experience, and create potential benefits. The performance of the Binance Web3 Wallet in this regard can be summarized as follows:

1. Security: Reducing Private Key Management Risks and Enhancing Risk Control Protection. For ordinary users, the biggest nightmare of self-custody wallets is the loss or theft of private keys. With the adoption of MPC technology, users of the Binance Web3 Wallet no longer need to memorize and securely store mnemonic phrases, significantly reducing the possibility of permanently losing assets due to negligence. Even if a phone is lost, users can recover their wallets using cloud-backed key shards combined with Binance's custodial shard. This mechanism effectively provides a bank-level account recovery service while ensuring that only the user has ultimate control. Additionally, the built-in risk address warnings and malicious contract alerts act as a "security guard" when users inadvertently encounter suspicious links or phishing sites. For example, when users authorize a certain DApp, the wallet automatically checks whether the contract is high-risk and issues a warning, thereby preventing common scams. Coupled with open-source code and audit endorsements that enhance transparency, security has become one of the main selling points of the Binance wallet. For ordinary investors who prioritize asset security and lack technical experience, this model of "official protection + user control" undoubtedly provides a more reassuring choice.

2. Convenience: Optimizing Operational Processes and Lowering Usage Barriers. The Binance Web3 Wallet focuses on improving several pain points of traditional on-chain wallets, providing users with an excellent ease of use experience. First is the no-configuration network: new public chains are automatically added, and users do not need to manually input RPC or other parameters; they can switch to the corresponding chain with a click, eliminating the cumbersome setup required by MetaMask. Secondly, the wallet automatically recognizes tokens and displays balances, so users can see their assets without having to add contract addresses after transferring obscure tokens. This is very user-friendly for beginners, avoiding the embarrassment of "not seeing money" due to not knowing how to add tokens. Furthermore, the Gas fee management issue has an innovative solution—the Binance wallet has a built-in "one-click exchange for Gas" feature, allowing users to directly exchange any token already in their wallet for the target chain's Gas Token. According to tests, this exchange transaction can be executed without needing to hold the mainnet coin of the target chain in advance; the system will automatically complete the exchange and pay the Gas, greatly alleviating the awkwardness of "no Gas, unable to transfer" when using a new chain for the first time. For example, if a user only has USDT in their wallet but wants to transfer ETH on the Ethereum chain, they previously had to obtain a small amount of ETH as Gas first; with this feature, they can directly exchange some USDT for ETH to pay the miner's fee, completing the entire process with one click within the wallet. Additionally, the integration with Binance accounts brings convenience: quick startup without private keys allows anyone who can use the Binance App to activate the Web3 wallet in seconds; centralized account balances can be instantly injected into the Web3 wallet for on-chain investments without waiting for block confirmations. These optimizations make the user experience of the Binance Web3 Wallet very smooth, lowering the barriers to Web3. As some reviews have stated, this wallet "operates more humanely and considerately, making it one of the best experiences currently available." For new users lacking on-chain experience, it significantly shortens the learning curve.

3. Functional Closure: A One-Stop Integration of Trading, Financial Management, and Application Ecosystem. With the Binance Web3 Wallet, users essentially have a fully functional on-chain financial terminal. It integrates the buying, trading, and financial management functions of traditional CEXs with the lending, yield farming, and NFT trading of the DeFi world. Within the wallet, users can directly swap tokens between various chain DEXs through the aggregated exchange feature (with deep support from Binance and low slippage), and they can also enter the "Earn" section to participate in on-chain staking and liquidity mining rewards. For example, users can trade emerging tokens on Uniswap on Ethereum and then seamlessly switch to the Binance Smart Chain to stake BNB for rewards, with all operations completed on the same interface. Meanwhile, the wallet's DApp browser opens the door to Web3 applications: users can connect directly to popular DeFi protocols (like Uniswap, Curve, etc.) and NFT markets without cumbersome imports. For players who enjoy trying various on-chain projects, the Binance wallet provides a unified control panel, eliminating the hassle of frequently switching between different wallets and browser extensions. Notably, the integration with Binance exchange accounts also achieves a fiat-exchange-on-chain closed-loop link: users can deposit fiat, invest in niche tokens, and withdraw profits, all within the Binance ecosystem. This closed loop ensures continuity in user experience and reduces the security risks of funds in intermediate links (compared to transferring coins to third-party wallets and then to DEXs, which carries higher risks of on-chain hacking). Overall, from the user's perspective, the Binance Web3 Wallet creates a convenient one-stop platform for crypto finance, enhancing the experience while also increasing user stickiness.

4. Potential Benefits: Capturing Airdrop Opportunities and Ecosystem Rewards. For many users deeply involved in on-chain activities, a wallet is not just a tool but a stepping stone to participate in early projects and gain airdrop benefits. The Binance Web3 Wallet, with its multi-chain support and application integration, naturally facilitates users in capturing these opportunities. First, it has built-in testnet faucets and task systems, making it easy for users to obtain test tokens from various chains and participate in interactions. According to community reports, the Binance wallet has periodically launched activities themed around different public chains, integrating multiple DApp interaction tasks in each session, with the chance to receive airdrops or commemorative NFT rewards upon completion. For example, users who complete several operations on the Aptos testnet through the wallet may receive an official NFT, and holding that NFT can yield additional rewards in subsequent activities. This officially organized one-stop "airdrop farming" greatly lowers the barrier for users to find project information themselves. Secondly, using the Binance Web3 Wallet itself may also yield ecosystem incentives. As Binance aims to promote the adoption of its wallet, it is possible that future benefits will be offered to wallet users, such as priority qualifications for airdrops of new projects on the BNB Chain, fee discount vouchers, etc. More directly, some popular protocols that have not yet issued tokens often use interaction records as a basis for airdrops, and using the Binance wallet allows for more convenient completion of these interactions, thereby increasing the chances of receiving airdrops. For instance, before the Arbitrum airdrop, many users needed to configure RPC and bridge assets to interact; however, Binance wallet users, due to the no-configuration multi-chain feature and built-in cross-chain bridge, can meet interaction conditions more easily and earlier. If security and experience are the explicit values, then airdrop benefits represent the potential hidden value of holding an excellent wallet. The Binance Web3 Wallet helps users lower the barriers to participating in cutting-edge Web3 projects, giving ordinary people the opportunity to share in the next round of benefits.

In summary, the Binance Web3 Wallet demonstrates certain value to users in terms of security, ease of use, functionality, and benefits: it strives to address the pain points of beginners while providing powerful features needed by advanced players. Of course, the realization of these values also relies on the continuous improvement of the wallet itself and the further enhancement of the ecosystem. While understanding the strengths and weaknesses of the Binance wallet, we also need to place it in a larger industry context and compare it horizontally with other mainstream wallets to more objectively assess its competitiveness.

Horizontal Comparison: Binance vs OKX, MetaMask, and Bitget Core Capabilities

Currently, the mainstream Web3 wallets in the market include both established decentralized wallets like MetaMask and emerging exchange-based wallets like OKX Wallet and Bitget Wallet. As a new entrant, the Binance Web3 Wallet needs to catch up with these competitors in terms of functionality and experience. Below, we compare the Binance wallet with OKX Wallet, MetaMask, and Bitget Wallet across several key dimensions: UI/UX, chain support range, usage permissions, security mechanisms, and ecosystem support.

1. User Interface and Experience (UI/UX): In terms of interface friendliness, both OKX and Binance wallets follow an easy-to-use route, but the details differ. OKX Web3 Wallet, with its earlier iterations, has a high level of interface maturity and is rated as very friendly for crypto newcomers, with clearly laid out on-chain function sections that are easy to understand. It offers a unified experience on both mobile and web platforms, supports user-customizable interface themes, and has fast loading and transaction response times. Binance Web3 Wallet, being directly integrated into the Binance App, has a UI style consistent with the exchange, overall being simple and intuitive, providing beginner guides and step-by-step setup processes. However, the wallet's entry is currently not placed on the homepage but is hidden in the "Funds" page, requiring manual switching, which may be due to the product still being gradually improved. Early versions experienced issues such as inconsistent language switching and page lag, which are relatively rare among competitors—both OKX and Bitget wallets support multiple languages like Chinese and English with smooth switching. MetaMask, as an established plugin wallet, has faced criticism for its mobile experience (early versions were laggy and prone to crashes), but it has improved significantly recently; its interface is relatively professional and not very user-friendly for non-technical users. Bitget Wallet (formerly BitKeep) has a standard interface but lacks an independent market module, preventing users from directly browsing token prices or trading Bitcoin inscriptions within the wallet, resulting in a somewhat fragmented experience. Overall, OKX currently has a slight edge in UI/UX, being regarded as "smooth and seamless," while the Binance wallet is catching up and optimizing; MetaMask is powerful but has a strong professional focus, requiring beginners to adapt.

2. Chain Support Range: Multi-chain compatibility is one of the core indicators of a wallet's strength. MetaMask only supports EVM-compatible chains, which means that non-Ethereum chains like Solana, Aptos, and Bitcoin require other wallets. In contrast, exchange-based wallets are all taking a multi-chain approach. OKX Web3 Wallet is currently in the lead—by the end of 2024, it will support 100+ blockchain networks, essentially covering mainstream public chains and emerging ecosystems, truly achieving "one wallet encompassing all chains." Bitget Wallet claims to support over 100 chains and aggregates hundreds of DEXs, demonstrating very broad compatibility. Binance Web3 Wallet started a bit later and currently officially supports about 35 public chains and over 100 DApps. However, with updates and iterations, this number is continuously increasing (some reviews mention that the Binance wallet has seamlessly switched between EVM and heterogeneous chains like Solana, providing an excellent experience). In terms of support for non-EVM chains, both OKX and Binance support the native Bitcoin network and its Ordinals inscription ecosystem, while Bitget Wallet's support for the Bitcoin ecosystem is somewhat lacking, as it cannot directly trade inscription assets within the wallet. For example, during the BRC-20 craze, OKX Wallet quickly integrated with the Bitcoin network and Ordinals, capturing a large portion of this market's users. Although Binance Wallet supported it a bit later, it has also launched trading for related assets like ORDI. Overall, in terms of multi-chain support: OKX is the largest and most comprehensive, Bitget follows, Binance is catching up but has already covered mainstream chains, while MetaMask is limited to Ethereum chains. For heavy multi-chain players, wallets from OKX, Bitget, and Binance clearly offer broader opportunities.

3. Usage Permissions and Account Models: This dimension involves the wallet's account opening methods, whether a trading account is required, and the differences in mnemonic/private key management models. Traditional wallets like MetaMask/imToken adopt a mnemonic self-management model, where users fully control their private keys but must back them up themselves, and registration does not require real-name verification. OKX Wallet uniquely supports two modes: users can choose between a keyless MPC wallet or a traditional mnemonic wallet. Regardless of the mode, OKX Wallet does not require an OKX exchange account; it can be used independently by downloading the app or browser extension. This is very important for privacy-conscious users. Binance Web3 Wallet, on the other hand, requires logging into a Binance account to activate. It defaults to an MPC semi-custodial mode and does not provide a mnemonic (unless users use the emergency export feature to retrieve their private keys). This means that Binance wallet users are generally subject to KYC real-name verification and are managed under the Binance account system. Bitget Wallet is similar to OKX, functioning as an independent app without needing to bind to a Bitget exchange account; it also operates under an MPC custodial model without a mnemonic. In summary, regarding usage thresholds and permission control: Binance's wallet strongly binds to the exchange account, with the advantage of an integrated account system (password recovery can be done through the account), but the downside is a lack of anonymity and independence. OKX and Bitget lean towards openness, allowing users to use them as completely independent wallets without needing to register for an exchange. In this regard, OKX offers the best flexibility, providing users with more choices; Binance has taken a route that strengthens account stickiness and compliance, each with its pros and cons.

4. Security Mechanisms and Risk Control: In terms of security, wallets have been converging in recent years, all introducing MPC technology and intelligent risk control, forming a "arms race" situation. The security features of the Binance Web3 Wallet have been detailed earlier: MPC private key sharding, proprietary risk control library, malicious contract interception, etc. OKX Wallet also places a high emphasis on security; reports indicate that it has not only passed SlowMist's private key security audit but also integrated an on-chain transaction monitoring system called "KYT Tianyan," which has built-in data on over 200 million risk addresses, issuing warnings before users transfer to dangerous addresses. OKX Wallet has also launched similar address detection to prevent hackers from confusing users with similar addresses for erroneous transfers. In terms of user identity protection, OKX allows users to choose to manage their mnemonics or entrust them to MPC, thus offering a higher degree of decentralization. Bitget Wallet employs MPC and has established the "GetShield" security system, which includes token contract risk scanning, authorization detection, and anti-phishing features. Notably, Bitget has launched a $300 million risk protection fund in collaboration with exchanges, allowing users to apply for compensation in the event of a hacker attack on their assets. MetaMask primarily relies on open-source code audits and browser sandbox environments for security, lacking as many proactive protection mechanisms, focusing more on education (such as phishing site warnings) and integration with hardware wallets for security. In a comprehensive comparison: in terms of proactive protection, OKX, Binance, and Bitget are on par, all introducing address blacklists and phishing detection; in terms of recovery mechanisms, OKX/Bitget provide cloud backups and email verification (similar to Binance's cloud backup, just without an account backend); in terms of extreme situation compensation, Bitget has a fund while Binance/OKX currently do not have such public commitments. Overall, the security levels of the three major exchange wallets are high and continuously iterating new features. Binance emphasizes "users fully control their assets" and allows private key exports, working on building user trust; OKX excels in technical strength, achieving exchange-level security on-chain; Bitget offers real monetary insurance protection. Security is not a shortcoming, and users can choose based on their trust levels.

5. Ecosystem Support: This refers to both the ecological resources behind the wallet and the importance of the wallet to the platform's strategy. The Binance Web3 Wallet benefits from Binance's vast user base and the BNB Chain ecosystem. Hundreds of millions of registered Binance users provide a potential growth pool for the wallet; statistics show that millions of Web3 wallets were created within weeks of its launch. Binance also encourages users to use the Web3 wallet through activities like Launchpad and Launchpool; for example, a recent airdrop for a new project required users to claim NFTs in the Binance wallet. Binance's brand and global compliance efforts also lend credibility to the wallet—many conservative investors trust products launched by large platforms more. OKX Wallet is backed by the OKX exchange and the OKX Chain public chain, enjoying a good reputation in the DeFi circle. The OKX team is very proactive in embracing new ecosystems: whether it was the early DeFi "liquidity mining" or the Bitcoin inscription craze in 2023, OKX was quick to support, rapidly expanding its market share. Data shows that during the peak of Ordinals trading, OKX Wallet captured 84%+ of the trading share, far exceeding other wallets. This reflects OKX's strength in sensing community trends and ecosystem support—its wallet integrates almost all protocols from DeFiLlama's Top 100 and thousands of DApps, making it the most comprehensive ecosystem. Bitget Wallet's ecosystem support mainly comes from the Asian market and multi-chain community, especially from the original BitKeep user base. In recent years, Bitget exchange has focused on spot and derivatives trading, also directing traffic to the wallet, supporting it as a new growth point for its business. MetaMask is backed by years of accumulation from ConsenSys and the Ethereum developer community; although it lacks user traffic from exchanges, it excels in industry standard positioning and extensive third-party integration (many DApps default to supporting MetaMask connections). Therefore, in terms of ecosystem support, it can be said that: Binance Wallet has the largest user base and brand appeal, OKX Wallet has advanced layouts in technical iteration and new ecosystems, Bitget Wallet is also backed by the resources of a rising exchange, while MetaMask has first-mover advantages and ecological foundations. For users, choosing an exchange-based wallet often means enjoying some platform benefits and quicker access to new features; while choosing an independent wallet means more neutrality and privacy. The "covert competition" between Binance and OKX in this regard also reflects their different strategic considerations, which we will analyze further in the next section.

Overall, the Binance Web3 Wallet still has gaps compared to OKX Wallet and Bitget Wallet in terms of functionality completeness (especially in the number of supported chains and richness of DApps, where OKX is clearly stronger), but with Binance's resource advantages, it has the potential to catch up. MetaMask represents a completely different positioning (tool-type wallet), and the two are more complementary than directly competitive. A one-sentence summary of the current competitive landscape is: "OKX leads in comprehensive functionality, Bitget follows closely, and Binance relies on resources to catch up." Whether Binance can achieve a breakthrough in the Web3 wallet space with its Wallet depends on the execution of its upcoming strategies.

Binance's Strategic Considerations for Web3 Wallet Development

Why is Binance investing resources to create such a Web3 self-custody wallet? This reflects the broader trend of the evolution of exchange businesses and Binance's own strategic intentions. Based on various information, we can interpret the deeper considerations behind Binance's launch of the Web3 wallet from the following angles:

(1) User Retention and Ecosystem Closure: 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 on-chain projects, they often needed to withdraw assets to external wallets like MetaMask or Trust Wallet, causing funds and traffic to flow out of the Binance ecosystem. Over time, users might gradually drift away from the exchange. The launch of an integrated Web3 wallet is precisely to prevent this loss, allowing users to meet their on-chain needs within the Binance platform, forming a closed-loop ecosystem of exchange–wallet–on-chain applications. As Binance officials state, 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 can engage in both centralized trading and decentralized investments without leaving their platform. This not only enhances user stickiness but also allows Binance to continuously track user behavior preferences on-chain, thereby providing more targeted services. This closed-loop strategy has been validated as effective by competitors: since OKX launched its Web3 wallet, many users return to OKX to earn or manage funds after trading, creating a virtuous cycle. Similarly, Binance does not want to cede DeFi traffic to others, making the launch of its own wallet an inevitable choice.

(2) Building a Complete Business Link of Trading + Investment: The Binance Web3 Wallet also helps achieve a trading closed loop and increase trading volume. Since 2024, the boundaries between centralized exchanges and decentralized trading protocols have become increasingly blurred, with many exchanges beginning to offer DEX aggregation and on-chain trading services. The Binance wallet serves as the carrier for these functions. Through the Swap/Bridge features in the wallet, Binance effectively retains a portion of the on-chain trading volume. For example, in March of this year, when OKX suspended its wallet's DEX aggregation service due to regulatory reasons, a large number of users switched to the Binance wallet for on-chain trading, resulting in a surge in decentralized trading volume on the Binance wallet, which at one point accounted for 54.1% of the entire market share. Statistics show that on March 18, 2025, the Binance Web3 Wallet facilitated $90.556 million in trading volume, with 28,103 active users, accounting for nearly 30% of all active users across crypto wallets during the same period. This case demonstrates that Binance has completed the traffic transition from CEX to DEX through its Wallet: when competitors falter, it immediately attracts users with zero fees and trading rewards. In the long run, Binance can leverage the wallet's aggregator and bridging functions to provide users with cross-market arbitrage and one-stop trading services, generating additional fee income and liquidity profits. Furthermore, the Wallet also synergizes with other products of the Binance exchange—for example, the Alpha feature launched by Binance directly integrates some high-quality on-chain projects, allowing the wallet and exchange to work together seamlessly, further solidifying the trading closed loop. In summary, the Web3 wallet embodies Binance's ambition to capture territory in the decentralized trading field and serves as a stronghold for its expansion into on-chain trading.

(3) Brand Extension and Innovative Image: For an industry giant like Binance, it is crucial to embrace new trends in a timely manner and maintain a leading technological image. The launch of the Web3 wallet can showcase Binance's presence and control in the DeFi wave. After all, Binance acquired Trust Wallet back in 2018, but in recent years, Trust Wallet has had a lackluster presence and has been viewed as a mere accessory to Binance's storefront. In contrast, competitors like OKX have made significant strides with their Web3 wallet, and Coinbase also has its own wallet and browser extension. If Binance delays action, it risks being seen as "technologically conservative and missing out on innovation." Now, with the official launch of the Web3 Wallet, Binance is signaling its determination to further transform into a Web3 infrastructure provider. This helps solidify Binance's leadership position in the community and reinforces the brand perception that "Binance is not just an exchange, but a leader in the Web3 ecosystem." At the same time, by promoting the wallet's advanced technologies (MPC, multi-chain, multi-function), Binance conveys a positive image of embracing innovation and prioritizing users. This is beneficial for enhancing user trust and mitigating regulatory shadows. Binance's 2023 year-end report also emphasized that the company improved the accessibility of Web3 products, focusing on user experience, with Web3 users and product numbers growing by 30%. These figures highlight Binance's investment in the Web3 space and indicate that the Web3 wallet will become one of the growth stories for the Binance brand in the next phase.

(4) Promoting the Prosperity of the BNB Ecosystem: The strategic value of the Binance wallet is also reflected in its support for the BNB Chain ecosystem. As a public chain led by Binance, if it can bring in a massive user base through the wallet, it will undoubtedly enhance the applications and token economy on the entire chain. Binance CEO Zhao Changpeng (CZ) has stated that one of the key goals of the Web3 wallet is to expand the user base of the BNB chain. With a large existing user base and fiat entry points, Binance can guide these CeFi users to experience DeFi, gaming, and more on the BNB Chain, thereby bringing real traffic and transactions to the BNB chain. As the official announcement at the wallet's launch claimed: "It will bring an additional billion users to Web3"—though this is an ambitious vision, it reflects Binance's desire to significantly expand the BNB ecosystem using its influence. Additionally, interactions within the wallet on the BNB Chain (such as wallet users conducting on-chain swaps or 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 later offer exclusive BNB benefits through the wallet (such as higher airdrop probabilities or fee reductions for holding BNB in the wallet) to further promote the circulation of BNB in Web3. In summary, the Binance Web3 wallet is a key "tentacle" for the BNB ecosystem's outward expansion, connecting hundreds of millions of CeFi users with a wealth of on-chain applications, and the chemical reaction generated by merging the two could become a new source of competitive advantage for Binance.

(5) Adapting to Regulation and Compliance Layout: In the past two years, regulation in the crypto industry has become increasingly stringent, especially regarding money laundering and illegal financing risks in the decentralized space, with regulatory agencies frequently voicing concerns. Against this backdrop, the Web3 wallet launched by Binance has taken a "compliance-friendly" decentralized wallet approach: all users undergo real-name verification, and on-chain transactions are traceable. This design may be Binance's proactive strategy to address the uncertainties of future regulatory requirements. If regulatory agencies require exchanges to take responsibility for decentralized operations within their ecosystems, Binance's wallet model is clearly more reassuring—at least it can achieve auditability and traceability (for example, it can cooperate in investigating the actual user identity behind a wallet address). In contrast, completely anonymous external wallets leave regulators with no means of oversight. It can be said that the Binance Web3 wallet seeks to find a balance between compliance and decentralization, setting a possible paradigm for the industry. This may become a distinguishing factor between Binance and its competitors in the future: while OKX and others choose to offer more anonymity and privacy in their wallets, Binance may appeal to those institutional users who are cautious due to regulatory pressures through its compliance. Additionally, Binance's wallet, through its MPC control design, has the capability to refrain from signing when illegal activities are detected, thereby freezing suspicious funds, which aligns with regulatory expectations. Of course, how to ensure user asset freedom while meeting regulatory requirements is a delicate issue; currently, Binance's wallet tends to protect users (as users have control over two key fragments). However, it is undeniable that actively embracing regulation has become a company strategy for Binance—they reached a settlement with U.S. regulators in 2023 and emphasized a compliance-centered approach. As a product of the "gray area," Binance has chosen to operate its Web3 wallet in a more transparent manner, reflecting its desire to reduce policy risks and explore more compliance business opportunities.

(6) Data Value and User Profiling: From a business perspective, having a proprietary wallet is also an important data entry point. Through the Binance Web3 wallet, the platform can gain a more comprehensive understanding of users' on-chain investment behaviors and preferences. For example, which DeFi protocols users frequently utilize and which chains they prefer—this data is immensely valuable for Binance to optimize products and formulate marketing strategies. In the past, these behaviors occurred in external wallets, which Binance could not access; now, with users utilizing the Binance Wallet, every action is traceable. Binance can leverage this data to provide personalized recommendations (such as suggesting related tokens on the main exchange site) or push financial products when users achieve significant on-chain profits, achieving cross-selling. Data can also help Binance identify high-value user groups for targeted maintenance. In summary, mastering on-chain data equates to having a more complete profile of users, which is a typical internet strategy: keeping users within their "walled garden" to consume and generate activity, thereby obtaining a 360-degree data view. The Binance Web3 wallet is a product of Binance's expansion from CeFi to DeFi. Once this model is successfully implemented, Binance will lead its competitors in user insights and be more adept at monetizing traffic. For instance, in the future, there may be advertisements or recommendations within the Wallet, providing targeted marketing for project parties—after all, Binance wallet users are all verified, leading to higher conversion rates. All of this is predicated on having a sufficiently large user base for the wallet; the good news is that Binance has already accumulated millions of wallet users shortly after its launch, indicating that a data goldmine is forming.

In summary, the strategic objectives behind Binance's development of the Web3 wallet can be summarized as: "Not letting DeFi's incremental users fall to others, but connecting the CeFi territory with the new DeFi frontier." By improving retention, perfecting the closed loop, shaping an innovative image, expanding the ecosystem, preemptively complying, and mastering data, Binance aims to take the initiative in the next round of industry competition. As one media outlet commented: "The launch of the Binance Web3 wallet responds not only to user demand but also to the inevitable choice for exchanges to enter the Web3 arena."

User Data and Market Trends

When analyzing the performance of the Binance Web3 wallet, we should also refer to some objective data indicators, including user scale, on-chain interaction frequency, and trends in market share. This data helps assess the current competitive position and development prospects of the Binance wallet:

1. User Growth: Since its launch, the number of users of the Binance wallet has grown rapidly. The official announcement revealed that within just a few weeks of its launch, millions of wallets had been created. BitEagle News reported that the number of new users exceeded 1 million in less than a month, reflecting an astonishing rate of user adoption. As of the end of 2023, Binance reported that the user base and usage of its various Web3 products (including the wallet) had grown by 30% year-on-year. It is evident that leveraging the traffic from the main Binance platform, the Web3 wallet has achieved rapid growth. This is something many independent wallets find difficult to match. However, it is important to note that creating a wallet does not equate to sustained 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 like 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. Particularly, starting from October 2023, as the market warmed up, the on-chain interaction volume of major wallets significantly increased. This period coincided with the launch and gradual improvement of the Binance Web3 wallet. In terms of market share, the traditional leader MetaMask's dominance was gradually eroded in the second half of 2023: before May, MetaMask held an absolute lead, followed by Bitget Wallet; however, since May 2023, wallets like OKX, Bitget, and Trust Wallet have experienced rapid growth, squeezing MetaMask's market share. By around April 2024, the number of active traders and transaction volume of the OKX wallet had surpassed others, maintaining a significant lead. The Binance Web3 wallet, having launched later, had a smaller share in the overall statistics for 2023. However, entering 2024, its curve began to rise, especially during Q1-Q2 2024, when Binance attracted many users through a series of updates and marketing efforts. A notable event was the transfer of users due to the suspension of OKX DEX in March 2025, during which the Binance wallet captured over half of the DEX traffic in a single day. Other data shows that during the boom of BRC-20 inscription trading, the OKX wallet led the market, while Binance quickly followed suit by launching related support and sharing in the profits. For instance, by mid-November 2023, the OKX wallet held an 84.3% market share in the Ordinals trading market, with Unisat at 14.7%, while the Binance wallet had just entered this field and had not yet made it to the top two. However, it is expected that as the Binance wallet continues to support more popular ecosystems (such as Layer 2, ZK Rollup, etc.) and launches incentive activities, its activity share will continue to increase.

3. Application Downloads and Ratings: From the feedback in app stores (using Google Play as an example), the download count of the main Binance app has exceeded 50 million. Since the Web3 wallet is a built-in feature, there is no separate app data. However, Binance has mentioned during promotions that it may launch a standalone Web3 wallet app or browser extension in the future. If launched independently, its download count and user ratings will become direct metrics. Currently, the user rating of the Binance wallet within the Binance app is similar to that of the overall Binance app, with users mainly complaining about interface details, bugs, etc., while the overall functionality has received some recognition. In contrast, OKX has an independent app for their Web3 wallet, which is also embedded in the OKX exchange app, accumulating considerable downloads and user ratings on both fronts. This cross-platform penetration strategy is something Binance will also consider.

4. Market Share and Industry Position: Combining the above data, we can outline the current market landscape for several wallets: MetaMask still has the largest cumulative user base (over 21 million monthly active users), but its growth rate has slowed; OKX Wallet, with its comprehensive features and trend tracking, has surged ahead in the past year, ranking high in activity and transaction volume market share; Bitget/BitKeep wallets have secured a place backed by the Southeast Asian market; while the Binance Web3 Wallet, as a rising star, has quickly entered the mainstream camp leveraging Binance's resources, currently positioned in the second tier alongside Trust Wallet and Coinbase Wallet, with significant upward potential. Notably, the overall market share of exchange-based wallets is squeezing the survival space of independent wallets—after May 2023, the combined share of OKX, Binance, Bitget, etc., has continued to expand, transforming MetaMask from a "dominant player" to a "crowded field." This indicates that users are beginning to prefer one-stop solutions provided by exchanges, with trust and convenience being key factors. As the largest exchange globally, Binance's wallet is expected to leverage its vast user base to gain a competitive edge. If the Binance wallet can catch up to OKX and Bitget in functionality, it is not impossible to achieve a market share that matches its exchange status, thanks to its brand appeal.

Overall, the current data performance of the Binance Web3 wallet validates its value: the rapid growth in user numbers indicates strong market demand for such products, and Binance has successfully retained some users who would have otherwise flowed to third-party wallets; at the same time, in the fiercely competitive Web3 wallet arena, the Binance Wallet has already established a foothold and begun to compete for market share. Of course, becoming a leader will still require time and product efforts. Future data trends are worth continuous observation, such as whether monthly active users can approach MetaMask levels and whether transaction volumes can compete with OKX, etc. But at least for now, the Binance Web3 wallet has already demonstrated its potential through data.

Conclusion: A Traffic Entry Point for BNB Ecosystem Extension and a New Threshold for Web3

As a key component of Binance's ecosystem layout, the launch of the Binance Web3 wallet is both a response to the DeFi wave in the industry and a strategic choice to solidify its own moat. As analyzed above, this wallet integrates the characteristics of decentralization and semi-custodianship in its technical architecture, strives for convenience and multi-chain coverage in its product functionality, and takes on the responsibility of linking CeFi and DeFi traffic in its strategic role. Despite initially facing some doubts and adjustments, its true value is gradually becoming apparent:

1. Internally, the Binance Web3 wallet serves as an extension of the BNB ecosystem and a functional complement to the Binance platform. It bridges the previously fragmented worlds of centralized trading and on-chain applications, opening the door to Web3 for Binance's hundreds of millions of users. It can be said to be an entry point for many traditional Binance users into DeFi, lowering the barriers to using Web3. This helps Binance consolidate its user base, extend user lifecycles, and convert some of the Web3 benefits into its own.

2. Externally, the Binance Web3 wallet acts as a reverse traffic aggregation channel. On one hand, it attracts on-chain trading volume through its built-in aggregator, bridging, and other features, serving DeFi users who are more willing to trust large platforms; on the other hand, it excels in KYC and security, attracting users who are wary of third-party wallets. It can even be said that the Binance wallet has, to some extent, redefined the paradigm of exchange wallets: it must possess the soul of decentralization while also having a foundation of compliance and security. This positioning makes it unique in the fierce competition among peers.

3. From an industry perspective, the "wallet war" between Binance and OKX signifies that CeFi platforms competing for DeFi traffic will become the norm. Users ultimately benefit from better products and services, but they also need to balance decentralization and convenience. The Binance Web3 wallet represents a compromise solution; whether it can ultimately succeed will depend on its ability to continuously meet user demands while also addressing regulatory requirements. If Binance resolves the current interface and support issues in its iterations, it could very well rise to the top.

In summary, the Binance Web3 wallet is no longer a dispensable accessory but has become an important piece in Binance's grand strategy. It demonstrates real user value: greater security, convenience, and opportunities for profit; at the same time, it bravely responds to external doubts: proving its potential through data and functional upgrades. Of course, challenges still exist—such as how to balance the centralization concerns brought by semi-custodianship and how to achieve a balance between privacy and compliance. The answers to these questions will require Binance to continuously explore in practice.

Looking ahead, we have reason to believe that as the functionality of the Binance Web3 wallet continues to improve, it is expected to become the "super app" of the Web3 world: a portal for billions of users to first access Web 3.0, a convenient tool for seasoned players to manage multi-chain assets, and a stronghold for CeFi giants to explore new blue oceans. As the industry has commented: "Leading CeFi users to DeFi and then feeding back the results of DeFi to CeFi may be the ultimate mission of the Binance wallet." Whether the Binance Web3 wallet can fulfill this mission and emerge victorious in the competition with peers remains to be seen.

References:

1. User feedback on issues such as the interface language and data synchronization of the Binance Web3 wallet.
2. Optimized features of the Binance Web3 wallet compared to MetaMask (automatic network addition, token display, built-in cross-chain bridge, etc.).
3. Introduction to the Binance Web3 wallet supporting over 60 blockchains and NFT market aggregation.
4. Evaluation of the Binance Web3 wallet testing by BlockBeats (MPC mnemonic-free design, cumbersome user entry, overlap with DeFi wallet functions).
5. Explanation of the Web3 wallet architecture by Binance's official blog (MPC three-shard, self-controllable, exportable private keys).
6. Comparison of the security mechanisms and on-chain richness of various Web3 wallets by Feixiaohao (MPC and risk control features of OKX/Binance/Bitget wallets).
7. Aicoin's comparison of the ecosystem progress of OKX and Binance Web3 wallets (OKX integrates over 70 chains and leads in Ordinals, holding 84.3% of the inscription market).
8. Analysis of the exchange wallet war by ChainCatcher (changes in user activity data, OKX capturing the market, decline in MetaMask's share).
9. CCN report on the Binance wallet capturing 54.1% of decentralized trading share and achieving a transaction volume of $90.55 million in March 2025.
10. Binance's official announcement of the launch of the Web3 wallet (emphasizing lowering barriers, MPC without mnemonic phrases, security, and CZ's positioning of the wallet).

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