Investors Retreat from Crypto Trading, but Binance Emerges as Dominant Safe Haven
As uncertainty and caution cloud the crypto landscape, trading activity in both bitcoin and altcoins has tumbled — but one exchange is managing to thrive amid the slowdown.
New research from CryptoQuant shows that total bitcoin spot trading volume dropped from $44 billion on February 3 to just $10 billion by the end of Q1, a sharp 77% decline. Altcoin trading fared even worse, plunging over 80% from $122 billion to $23 billion in the same period.
Such a dramatic pullback suggests traders are increasingly risk-averse, possibly awaiting more stable conditions or reacting to macroeconomic headwinds — including geopolitical tensions and volatile bond markets.
But while volumes have dried up across much of the industry, Binance is seeing the opposite trend: growing dominance. The exchange’s share of daily bitcoin trading surged from 33% to 49% by the end of Q1. Altcoin volumes on Binance followed suit, with its share rising from 38% to 44%.
“Binance has become the go-to platform during turbulent times,” CryptoQuant analysts noted. “Its liquidity and trading infrastructure make it the preferred choice when markets get shaky.”
Even amid the volume drought, interest in select altcoins remains steady on Binance, with BNB, TON, and EOS maintaining healthy trading activity. Meanwhile, on-chain data shows BTC inflows into Binance have increased significantly, with the exchange’s reserves rising by over 22,000 BTC from late March to early April.
That uptick suggests investors may be consolidating funds on Binance ahead of key economic catalysts — including upcoming inflation data — or simply choosing safety over speculation.
In a market still navigating stormy waters, Binance appears to be the anchor.
