Binance Gains Market Share as Bitcoin Trading Volumes Down 77% from Yearly High: CryptoQuant
A decline in volumes of such a significant level indicates that traders and investors are losing interest or confidence, perhaps due to uncertainty, fear or anticipation of more favorable conditions.
Author: Shaurya Malwa | Edited by: Parikshit Mishra Updated: April 10, 2025, 05:17 PM Published: April 10, 2025, 08:05 AM
Key points:
- Spot trading volumes of Bitcoin and altcoins have fallen significantly, with Bitcoin down nearly 77% since early February, while altcoins have fallen more than 80%.
- Binance has increased its market dominance, now accounting for nearly 50% of total cryptocurrency trading volume.
- Despite the overall downturn, Binance still sees high trading activity in key altcoins such as BNB, TON, and EOS.
Spot trading volumes for Bitcoin (BTC) and altcoins have declined as cryptocurrency prices have been in a correction phase over the past two months, with cryptocurrency exchange Binance becoming the preferred choice for traders, according to a report from CryptoQuant.
According to the analytics firm, total spot bitcoin trading volume on crypto exchanges fell from a peak of $44 billion on February 3 to $10 billion at the end of the first quarter, a decline of almost 77%. At the same time, spot altcoin trading volume on crypto exchanges fell from a peak of $122 billion on February 3 to $23 billion at the end of the first quarter, a decline of more than 80%.
A decline in volume at this level indicates that traders and investors are losing interest or confidence, perhaps due to uncertainty or fear. Falling prices mean that the value of Bitcoin and other cryptocurrencies is falling, which could scare more people away, creating a cycle of declining trading and falling prices, the report added.
Market Loss – Binance's Gain
At the same time, Binance has strengthened its position among other cryptocurrency exchanges, with its share of total trading volume in the market reaching almost 50%. Binance's share of total daily spot Bitcoin trading volume increased from 33% on February 3 to 49% by the end of the first quarter.
This suggests that trading volumes on other exchanges have been declining much faster than on Binance, and that the exchange is becoming a leading liquidity venue during periods of increased market volatility.
Additionally, Binance's share of total daily altcoin spot trading volume increased from 38% on February 3 to 44% by the end of the first quarter.
Some altcoins continue to see relatively high spot trading volumes on Binance despite the overall decline in trading volumes. For example, major altcoins such as BNB, TON, and EOS continue to see relatively high activity while overall cryptocurrency volumes have declined.
Meanwhile, as independent analyst Martun of CryptoQuant reports, the influx of bitcoins into Binance has accelerated over the past week.
“Bitcoin reserves on Binance increased from 568,768 BTC (March 28) to 590,874 BTC (April 9), an increase of 22,106 BTC,” he said in a comment. “This shows a significant acceleration in BTC inflows to Binance. Investors are likely actively moving funds to Binance due to macroeconomic uncertainty and the upcoming CPI announcement.”
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