Bitcoin (BTC) and Altcoin Spot Trading Volumes have decreased since cryptographic prices entered into a correction mode in the last two months, with Crypto Exchange Binance emerging as the preferred route for merchants, according to a Cryptoquant report.
Bitcoin Spot’s total volume in encryption exchanges decreased from a maximum of $ 44 billion on February 3 to $ 10 billion at the end of the first quarter, a fall of almost 77%, according to the analysis firm. Meanwhile, Altcoin’s total volume in cryptographic exchanges decreased from a maximum of $ 122 billion on February 3 to $ 23 billion at the end of Q1, a fall of more than 80%.
A volume drop in such magnitude suggests that merchants and investors are losing interest or trust, possibly due to uncertainty or fear. The drop in prices means that the value of Bitcoin and other crypts is going down, which can scare more people, creating a cycle of less trade and lower prices, the report added.
Market loss is Binance’s gain
During the same time, Binance increased its dominance over the other cryptographic exchanges with its participation in the total market trade reaching almost 50%. Binance participation in the total daily volume of Bitcoin spots increased from 33% by February 3 to 49% for the end of the first quarter.
This implies that the volume trade in other exchanges decreased much faster than in Binance, and that the exchange becomes the largest place of liquidity in times of greater volatility in the market.
In addition, the participation of Binance in the total daily volume of negotiation of Altcoin daily spots increased from 38% by February 3 to 44% at the end of the first quarter.
Some Altcoins still show negotiation volumes of relatively high points in Binance, despite the general slowdown in commercial volumes. For example, great alternatives such as BNB, Ton and EOS are still negotiated with relatively high activity, at a time when general cryptographic volumes have decreased.
Meanwhile, Bitcoin Binance tickets have accelerated last week, wrote the independent analyst Martanun.
“The Bitcoin Reserve in Binance has increased from 568,768 BTC (March 28) to 590,874 BTC (April 9), an increase of 22,106 BTC,” he said in a fragment. “This shows strong acceleration in BTC to Binance inputs. Investors are probable to actively move funds to Binance, due to macro uncertainty and before the next announcement of the CPI.”
