CQ Research
Binance Dominates Exchange Spot Trading Volume Amid Market Volatility
Bitcoin and altcoins' spot trading volume has declined as crypto prices entered into correction mode in the last two months. Total Bitcoin spot trading volume on crypto exchanges declined from a high of $44 billion on February 3, to $10 billion at the end of Q1. Meanwhile, total altcoin spot trading volume on crypto exchanges declined from a high of $122 billion on February 3, to $23 billion at the end of Q1. As spot trading volume declined, Binance increased its dominance over the other crypto exchanges, with its share of total spot trading volume approaching 50%. Binance's share of total daily Bitcoin spot trading volume increased from 33% on February 3 to 49% by the end of Q1. This implies that trading volumes on other exchanges declined much faster than on Binance, and that Binance becomes the largest liquidity venue on times of higher market volatility. Furthermore, Binance's share of total daily Altcoin spot trading volume increased from 38% on February 3 to 44% by the end of Q1. Moreover, Binance clearly becomes the venue for the largest trading liquidity in times of high volatility. For example, when Bitcoin dropped from $96K to $90K in the span of two days starting On February 24, spot trading volumes at Binance surpassed those of all other exchanges combined. At the same time, as crypto prices experienced a strong correction, Binance's share of Altcoin trading volume spiked to 64%, for a total of $18 billion. Some altcoins still show relatively high spot trading volumes on Binance, in spite of the overall slowdown in trading volumes. For example, large altcoins like BNB, TON and EOS are still being traded with relatively high activity, at a time that over all crypto volumes have declined.