Binance Increases Market Share as Bitcoin Trading Volume Falls 77% From Its Annual High: CryptoQuant

Key Points:

• Spot trading volumes for Bitcoin and altcoins have seen a significant decline, with Bitcoin dropping almost 77% and altcoins falling over 80% since early February.

• Binance has strengthened its market share, now handling close to 50% of all crypto trading volumes.

• Despite the overall downturn, Binance continues to experience robust trading activity in key altcoins like BNB, TON, and EOS.

Bitcoin (BTC) and altcoin spot trading volumes have dropped as crypto prices entered a correction phase over the past two months, with Binance emerging as the preferred platform for traders, according to a report from CryptoQuant.

The total spot trading volume for Bitcoin on crypto exchanges fell from $44 billion on February 3 to $10 billion by the end of Q1, marking a nearly 77% decline, according to the analytics firm. Similarly, total altcoin spot trading volume dropped from $122 billion on February 3 to $23 billion by the end of Q1, representing a decline of more than 80%.

A drop in volume of this magnitude indicates that traders and investors may be losing interest or confidence, potentially due to uncertainty or fear. As prices fall, the value of Bitcoin and other cryptocurrencies decreases, which can drive more people away, creating a cycle of reduced trading and further price declines, the report noted.

Binance Gains While the Market Declines

During this period, Binance has strengthened its position in the crypto market, with its share of total market trading approaching 50%. Binance’s share of daily Bitcoin spot trading volume increased from 33% on February 3 to 49% by the end of Q1.

This indicates that trading volumes on other exchanges have fallen much more quickly than on Binance, allowing the exchange to become the largest source of liquidity in times of market volatility.

Binance's share of daily altcoin spot trading volume also grew, from 38% on February 3 to 44% by the end of Q1.

Despite the overall market slowdown, Binance continues to see relatively high trading volumes in certain altcoins, with larger altcoins such as BNB, TON, and EOS still experiencing considerable activity.

Moreover, Bitcoin inflows to Binance have accelerated in the past week, according to independent CryptoQuant analyst Martuun.

"The Bitcoin reserve on Binance grew from 568,768 BTC (March 28) to 590,874 BTC (April 9), a rise of 22,106 BTC," he stated. "This indicates a rapid increase in Bitcoin inflows to Binance, likely as investors move funds to the platform due to macroeconomic uncertainties and in anticipation of the upcoming CPI report."