Binance Gains Ground as Crypto Trading Volumes Slide Amid Market Uncertainty
Spot trading activity across the crypto landscape has taken a substantial hit over the past two months, with investor sentiment turning cautious. Despite the broader slowdown, Binance has emerged as a standout, steadily increasing its dominance among digital asset exchanges, according to a new report from CryptoQuant.
Bitcoin (BTC) spot trading volume plummeted nearly 77%, dropping from a peak of $44 billion on February 3 to just $10 billion by the close of Q1. Altcoin volumes faced even steeper declines, falling over 80% from $122 billion to $23 billion in the same period.
According to CryptoQuant, the sharp pullback reflects waning confidence and rising uncertainty among traders, who may be waiting on the sidelines for improved macroeconomic conditions or more favorable price action. The downturn in prices is feeding a cycle of reduced activity, which in turn reinforces the broader correction.
Binance Tightens Its Grip
Amid the sector-wide slowdown, Binance has captured a significantly larger share of the remaining trading activity. The exchange’s share of total daily bitcoin spot volume rose from 33% in early February to 49% by the end of March — nearly half of all BTC spot trading. This indicates Binance has become the go-to platform during periods of market stress.
Binance’s grip on the altcoin market also strengthened, with its share of daily altcoin spot trading increasing from 38% to 44% over the same period. This rise in market share suggests that other exchanges saw trading volumes evaporate at a faster pace.
Despite the overall cooling in altcoin trading, Binance continues to see relatively strong activity in certain tokens, including BNB, Toncoin (TON), and EOS — signaling that pockets of demand remain within the platform’s ecosystem.
BTC Inflows to Binance Accelerate
Adding to Binance’s growing footprint, bitcoin inflows to the exchange have surged recently. Independent CryptoQuant analyst Martuun noted that Binance’s BTC reserves grew from 568,768 BTC on March 28 to 590,874 BTC by April 9 — an increase of over 22,000 BTC.
“This sharp rise in reserves suggests a renewed movement of funds to Binance,” said Martuun. “With macro conditions in flux and the CPI data release looming, investors may be parking assets on the platform in preparation for increased volatility.”
As the market continues to digest geopolitical tensions, regulatory developments, and shifting investor sentiment, Binance’s expanding dominance highlights its position as a key player during times of uncertainty.
