Why Most Real Crypto Liquidity Still Runs Through Binance

Data from CryptoQuant highlights a persistent structural reality in the cryptocurrency market: despite years of criticism and repeated attempts at decentralization, Binance continues to dominate the flows that actually move prices.

The chart comparing spot and futures activity across exchanges shows that Binance has consistently controlled between 65% and 80% of total market volume since early 2023. This dominance holds across both spot and derivatives markets, indicating that the majority of price-setting capital remains concentrated on a single venue.

Market Structure Since 2023

Throughout 2023, Binance’s leadership was especially pronounced. Other exchanges primarily served retail-driven and regional demand, while Binance concentrated larger, more directional capital. This structure resulted in clearer trends and more decisive market moves, as liquidity was centralized rather than fragmented.

During 2024, volumes on competing exchanges increased, giving the appearance of a more distributed market. However, the data shows that this dispersion did not translate into a shift in control. Binance maintained its leading role, particularly in derivatives, where leverage and directional positioning are most influential for price formation.

Stress Periods Reveal Where Real Liquidity Lives

The 2025–2026 period reinforces this pattern. While other exchanges occasionally recorded volume spikes, these moves were short-lived and failed to establish sustained momentum. In contrast, Binance consistently absorbed liquidity during periods of heightened volatility, uncertainty, and market stress.

This behavior suggests a clear distinction in how risk is taken across venues. Binance remains the primary venue for leveraged and aggressive positioning, while activity on other exchanges appears more spot-oriented and defensive. When traders seek exposure, they concentrate on Binance. When they reduce risk, they do so elsewhere.

Why Binance Dominance Still Matters

High Binance dominance correlates with stronger trends and higher volatility, as concentrated leverage amplifies directional moves. Conversely, periods where other exchanges gain relative share tend to coincide with weaker rallies that struggle to sustain follow-through.

Despite ongoing efforts to create a multi-centered market structure, capital repeatedly gravitates back to Binance when it matters most. This behavior implies that institutional participants and large holders continue to view Binance as the deepest and most reliable source of liquidity.

Structural Takeaway

The data does not suggest that alternative exchanges are irrelevant. Instead, it shows that they play a supporting role rather than a price-setting one. Market stress, major trend shifts, and volatility events continue to originate where liquidity is deepest.

For now, the CryptoQuant data makes one point clear: no matter the criticism, Binance remains the backbone of crypto market liquidity.

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