Bitcoin and altcoin spot trading volumes have plummeted significantly in the past two months, as crypto prices enter a correction phase.
The drop in trading activity has particularly impacted exchanges, with Binance emerging as the dominant platform for traders, according to report from CryptoQuant, shared by CoinDesk.
A Sharp Decline in Trading Volumes
Bitcoin spot trading volume saw a sharp decrease from a peak of $44 billion on February 3 to just $10 billion by the end of Q1, a drop of approximately 77%. Similarly, total altcoin spot trading volume on crypto exchanges fell from $122 billion to $23 billion, marking an 80% decline over the same period.
This drastic drop in trading volumes signals a decline in interest or confidence among traders, likely fueled by market uncertainty and price corrections. As crypto prices fall, the perceived value of bitcoin and altcoins diminishes, further discouraging traders and creating a cycle of lower volumes and declining prices.
Binance Dominates Amid Declining Trading Volumes
Despite the general downturn, Binance has seen its market share grow significantly. Binance’s share of total market trading volume rose to nearly 50%, with the platform’s share of daily bitcoin spot trading increasing from 33% on February 3 to 49% by the end of Q1. This suggests that Binance is gaining market dominance at a much faster rate than other exchanges.
Binance also saw an increase in its share of daily altcoin spot trading volume, from 38% to 44%. Despite the overall slowdown in the crypto market, large altcoins such as BNB, TON, and EOS are still seeing relatively high trading activity on Binance.
Bitcoin Inflows Surge to Binance
In the past week, Binance experienced a notable uptick in bitcoin inflows, with its bitcoin reserve growing from 568,768 BTC on March 28 to 590,874 BTC on April 9, a rise of over 22,000 BTC. This increase suggests that investors are actively moving their funds to Binance, possibly due to macroeconomic uncertainty and anticipation of upcoming announcements like the Consumer Price Index (CPI).
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/crypto-market-faces-decline-binance-sees-increased-activity-in-q1/