For the past two months, cryptocurrency has been in correction mode, with spot trading volumes of Bitcoin (BTC) and altcoins falling by hundreds of billions of dollars.
Despite this plunge in spot trading volume, Binance, the world’s largest crypto exchange, continues to lead other platforms, with spot volume share increasing by the end of the first quarter.
Binance leads the spot volume market
A report by on-chain analytics firm Cryptoquant shows the exchange’s spot trading volume of Bitcoin fell from a peak of $44 billion on February 3 to $10 billion by the end of the quarter. Similarly, the total volume of Altcoin spot trading on crypto trading platforms plummeted from $122 billion to $23 billion over the same period.
Although the total amount of spot trading volumes generally decreased, Binance saw more trading activity compared to other crypto exchanges. This shows that trading volumes on other exchanges have dropped much faster than binance, and that the world’s leading crypto platform has become the largest liquidity venue during periods of high market volatility.
From February 3rd until the end of the first quarter, Binance’s total Bitcoin spot trading share rose from 33% to 49%, while Altcoins’ share spiked from 38% to 44%. Currently, Binance accounts for almost 50% of the total crypto spot trading volume.
The largest fluidity venue during volatility
Cryptoquant, which demonstrated its claim that BINANCE would become the biggest trading liquidity venue in an era of high volatility, revealed that spot trading volume on the exchange surpasses all other platforms between February 24th and 26th, when BTC plunged from $96,000 to $90,000.
These two-day Bitcoin declines caused substantial fixes in the crypto market, affecting other coins. However, Binance’s Altcoin spot trading volume rose to 64%, adding a total of $18 billion.
Additionally, Cryptoquant found that some altcoins exhibit relatively high spot trading volumes despite market-wide revisions. Market participants trade large assets such as Binance Coin (BNB), Toncoin (Ton), and EOS (EOS) at relatively high activity in Binance, regardless of the decline in crypto volume.
Meanwhile, Binance plans to discontinue several altcoins on April 16, including Badger (Banger), Balancer (BAL), Beta Finance (Beta), Cream (Cream), Cortex (CTXC), AELF (ELF), FIRO (FIRO), and KAVA LEND (HARD). Delisting follows collective decisions by users via exchange votes against exchange mechanisms.
