Market volatility expands liquidity reorganization... intensifying concentration around major exchanges

Source: BlockMedia Original Title: As Uncertainty Grows, Liquidity Returns to Binance… Both Spot and Derivatives Hit New Records Original Link: Global digital asset( virtual asset) market volatility has reignited, with liquidity increasingly concentrated on major exchanges. The world’s largest exchange has recorded historic trading volumes in both spot and derivatives segments this year, further widening the gap with competitors. As market uncertainty rises, investor hedging demand has increased, leading to a lively overall trading activity.

Inflow of $1.17 trillion… Dominant Trading Advantage

According to blockchain data analysis firm CryptoQuant(CryptoQuant), the total cryptocurrency inflow to major exchanges in 2025 reached approximately $1.17 trillion(about 1560 trillion won), a 31% increase from the previous year. This is a significant difference compared to the $946 billion recorded by other major exchanges during the same period, coinciding with the surpassing of 300 million users, further strengthening market dominance.

The spot trading volume is also overwhelming. It is projected that by the end of 2025, major exchanges will handle about $7 trillion in spot trading volume, roughly five times that of the second-largest exchange. The number of trades is expected to reach 24.1 billion annually, a 4% increase from the previous year and more than tripling compared to 2022.

Record highs continue in derivatives. The number of perpetual futures trades increased by 33% year-over-year to 49.6 billion, with cumulative trading volume surpassing $24.6 trillion, more than double that of other major exchanges. CryptoQuant’s research team commented, “This figure indicates that user activity is continuously increasing during the overall bullish market.”

Market share also clearly favors these exchanges. As of June this year, major exchanges hold 41.1% of the global spot market.

Hedging Demand Expands with Volatility Recovery… Liquidity Concentration Intensifies

Meanwhile, as market volatility has recently increased again, liquidity is becoming more concentrated in large centralized exchanges. Glassnode stated, “Compared to the exceptionally low volatility phase earlier this year, we are now transitioning into a more active market flow phase.”

In this environment, large centralized exchanges are believed to benefit relatively more. Most strategic trading activities such as arbitrage, high-frequency trading, and hedging rely on deep liquidity.

CryptoQuant emphasized in its report, “Liquidity tends to gather where liquidity exists,” and expects the concentration of liquidity toward major exchanges to continue.

Growth Continues for Competitor Exchanges… Institutional Funds Focused on Regulated Exchanges

Meanwhile, major exchanges are steadily growing in their respective areas. Some exchanges have a strong presence in North America, while others excel in specific derivatives and altcoin liquidity segments.

Additionally, activity from institutional investors is expanding on regulated exchanges, increasingly influencing benchmark price formation processes. As overall liquidity reconfigures around key exchanges, each is expected to seek differentiation through region-specific and product-specific strategies.