Crypto Spot Trading Volumes Drop as Binance Solidifies Market Dominance

Crypto Spot Trading Volumes Drop as Binance Solidifies Market Dominance

Over the past two months, both Bitcoin (BTC) and altcoin spot trading volumes have seen a significant decline as cryptocurrency markets entered a correction phase, according to data from CryptoQuant. Amid this slowdown, Binance has emerged as the go-to platform for traders, increasing its dominance across the industry.

Bitcoin spot trading volume across major exchanges fell sharply from a peak of $44 billion on February 3 to just $10 billion by the end of the first quarter — marking a steep 77% decrease. Altcoin volumes experienced an even sharper drop, plummeting from $122 billion to $23 billion in the same period, a drop of over 80%.

This drastic reduction suggests a waning interest or confidence among traders and investors, potentially driven by fear and market uncertainty. As prices fall, more participants may exit the market, exacerbating the downward trend in both value and volume.

Binance Gains Ground Amid Market Contraction

While overall trading activity declined, Binance strengthened its grip on the market. The exchange’s share of daily Bitcoin spot trading rose from 33% on February 3 to 49% by the end of March. In the altcoin segment, Binance’s share increased from 38% to 44% during the same period.

This growth indicates that Binance is not only weathering the downturn better than its peers but is also becoming a primary source of liquidity during volatile periods.

Despite the broader market cooldown, some major altcoins (including BNB, TON, and EOS) continue to witness healthy trading volumes on Binance, underscoring the platform’s resilience and appeal.

Adding to this trend, Bitcoin inflows to Binance have surged recently. Independent analyst Martuun from CryptoQuant noted that the exchange’s BTC reserves grew from 568,768 BTC on March 28 to 590,874 BTC by April 9 — a rise of 22,106 BTC.

“This sharp increase in reserves suggests investors are increasingly moving their Bitcoin to Binance, likely in anticipation of macroeconomic events such as the upcoming CPI report,” Martuun observed.