Over the past two months, Bitcoin and altcoins have declined, which has caused a significant drop in the interest of investors.
Total Bitcoin spot trading volume fell from $44 billion on February 3 to $10 billion by the end of Q1 — a staggering 77% decline.
Altcoin trading volume also took a hit, with a strong decline of about 80% from $122 billion to $23 billion.
At the same time, Binance turned out to be the preferred exchange platform for traders over other platforms. Binance dominated with its shares of total market trading with almost 50%. Its daily spot trading volume increased from 33% on February 3 to 49% by the end of Q1.
Some altcoins, like Binance Coin (BNB), Toncoin (TON), and EOS, still show relatively high trading activity on Binance, despite the overall market slowdown.
Bitcoin inflows to Binance have also accelerated, with a notable increase in reserves over the past week. With an increase from 568,768 BTC (Mar 28) to 590,874 BTC (Apr 9), an increase of 22,106 BTC.
The increased Binance dominance over other exchange platforms could mean that investors are losing interest or confidence in other platforms, possibly due to uncertainty or fear. Therefore, they are choosing Binance as their go-to platform since it currently has the largest liquidity.
Source: CoinDesk