Crypto trading activity slumps, but Binance tightens its grip as top liquidity hubBitcoin and altcoin spot trading volumes have plunged sharply since February 2025, with Bitcoin trading volume dropping 77% from its yearly peak, according to a new report by on-chain analytics firm CryptoQuant. Despite the broader market slowdown, Binance has gained significant market share, now handling nearly 50% of all crypto spot trading volume.Key Figures:Bitcoin trading volume fell from $44B (Feb 3) to $10B (end of Q1) — a 77% decline.Altcoin spot trading volume dropped from $122B to $23B, an 80% fall.Binance’s share of BTC spot trading volume rose from 33% to 49%.Binance’s altcoin trading dominance grew from 38% to 44%.Trading Volume Freeze Reflects Market SentimentCryptoQuant analysts suggest the decline reflects growing investor fear and uncertainty, with traders moving to the sidelines amid macroeconomic instability, falling prices, and anticipation around the upcoming U.S. CPI print."A drop of this magnitude implies that many traders are either losing confidence or choosing to wait for clearer signals before re-entering the market,” the report noted.Binance Gains as Others RetreatAs overall trading activity dries up, Binance has emerged as the primary liquidity hub. The exchange’s resilience during high-volatility periods has helped it retain — and even grow — its market dominance.Altcoins like BNB, TON, and EOS continue to see relatively strong trading activity on Binance, despite the sector-wide downturn.BTC Inflows to Binance AccelerateCryptoQuant analyst Martuun highlighted a sharp spike in Bitcoin inflows to Binance over the last 12 days, ahead of the U.S. inflation report:“Bitcoin reserves on Binance surged from 568,768 BTC (Mar 28) to 590,874 BTC (Apr 9) — an increase of 22,106 BTC worth $1.82B.”The trend may signal potential sell-side pressure, or investors preparing to reposition in response to macro shifts, according to CoinDesk.
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