In the past two months, the cryptocurrency market has been in a correction phase, with spot trading volumes for bitcoin (BTC) and altcoins dropping by tens of billions of dollars. Despite the decline in spot trading volume, the world's largest cryptocurrency exchange, Binance, continues to lead other platforms as its share of spot trading volume increased by the end of the first quarter.

Binance leads the spot trading volume market

According to reports from the chain analysis company CryptoQuant, the spot trading volume of bitcoin on exchanges has decreased from a peak of $44 billion on February 3 to $10 billion by the end of Q1. Similarly, the total spot trading volume of altcoins on cryptocurrency trading platforms has sharply decreased from $122 billion to $23 billion during the same period.

While the overall spot trading volume has generally decreased, Binance has seen more trading activity compared to other cryptocurrency exchanges. This indicates that trading volumes on other exchanges have declined much faster than on Binance, and the world's leading cryptocurrency platform has become the largest liquidity venue during times of higher market volatility.

From February 3 to the end of Q1, Binance's market share of the total spot trading volume of Bitcoin increased from 33% to 49%, while the market share of altcoins surged from 38% to 44%. Binance now accounts for nearly 50% of the total spot trading volume in cryptocurrency.

The largest liquidity venue during the volatility period

To support the claim that Binance has become the largest trading liquidity venue during high volatility periods, CryptoQuant reveals that the spot trading volume of this exchange surpassed the trading volume of all other platforms combined from February 24 to February 26, when BTC sharply fell from $96,000 to $90,000.

Bitcoin's decline over those two days triggered a significant correction in the cryptocurrency market, affecting other coins; however, Binance's spot trading volume for altcoins increased to 64%, totaling an increase of $18 billion.

Additionally, CryptoQuant found that some altcoins exhibited relatively high spot trading volumes despite the overall market correction. Market participants are trading large-cap assets such as Binance Coin (BNB), Toncoin (TON), and EOS (EOS) with relatively high activity on Binance, regardless of the decrease in cryptocurrency volume.

Meanwhile, Binance is planning to delist several altcoins on April 16, including Badger (BADGER), Balancer (BAL), Beta Finance (BETA), Cream (CREAM), Cortex (CTXC), aelf (ELF), Firo (FIRO), and Kava Lend (HARD). The delisting follows a collective decision by users through the exchange's Vote to Delist mechanism.