Crypto Data Shows Trading Power Concentration

What to Know:

• Binance maintained its dominance in crypto exchange volumes in 2025, capturing over 40% of spot and Bitcoin perpetual futures trading.
• The crypto market saw a divergence in exchange activity, with spot market growth slowing while derivatives trading expanded.
• XRP was among the altcoins with strong volumes on Binance, underscoring the exchange’s significance for XRP liquidity and trading activity.

The crypto exchange landscape in 2025 was characterized by a concentration of trading volume among a few major players, with Binance leading the pack. While spot market growth decelerated, the derivatives market continued its expansion, indicating a shift in trading preferences. These trends have significant implications for liquidity, market structure, and the accessibility of various crypto assets.

Spot Market Slowdown

Total spot trading volume reached $18.6 trillion in 2025, a 9% increase year-on-year. While still positive, this growth rate represents a significant slowdown compared to the 154% surge recorded in 2024. This deceleration suggests a potential maturation of the spot market or a shift in trader focus towards other asset classes, such as derivatives.

Derivatives Market Expansion

In contrast to the spot market, perpetual futures activity experienced robust growth, rising 29% year-on-year to $61.7 trillion. This expansion highlights the increasing popularity of derivatives trading, driven by factors such as leverage, hedging opportunities, and the ability to profit from both rising and falling markets. The growth in derivatives trading also impacts market structure, potentially increasing volatility and influencing price discovery.

Exchange Dominance

Binance solidified its position as the leading crypto exchange, capturing approximately 41% of the total spot volume among the top 10 exchanges, with nearly $7 trillion in volume. The platform also led in Bitcoin perpetual futures trading, processing $25.4 trillion in volume, or 42% of the top 10 total. This dominance underscores Binance’s influence on market liquidity and price discovery.

Altcoin Activity

Binance recorded strong volumes in several altcoins, including Ethereum (ETH), Ripple (XRP), Binance Coin (BNB), Tron (TRX), and Solana (SOL). The strong showing of XRP suggests continued interest and trading activity in the asset, potentially influenced by developments in Ripple’s legal proceedings or broader market sentiment. The availability of these altcoins on major exchanges like Binance contributes to their liquidity and accessibility for traders.

Regional User Base

Traffic data reveals regional differences in exchange usage. Binance’s user base is relatively diversified, with significant traffic from South Korea, Brazil, and Vietnam. In contrast, Coinbase, Crypto.com, and Kraken draw the majority of their traffic from the United States. These regional preferences may reflect regulatory environments, market access, and local investment trends.

Stablecoin Liquidity

Stablecoin liquidity remains concentrated, with Binance holding $47.6 billion in USDT and USDC reserves, representing 72% of the top 10 balances. The concentration of stablecoin reserves highlights the importance of major exchanges in providing liquidity and facilitating trading activity. The combined BTC, ETH, USDT, and USDC reserves of Binance and Coinbase account for more than half of the total, further emphasizing their significance in the crypto ecosystem.

The crypto exchange market in 2025 saw continued concentration of volume on leading exchanges like Binance, alongside a notable shift towards derivatives trading. These trends underscore the evolving market structure and the importance of understanding liquidity dynamics, regional user preferences, and the role of major exchanges in shaping the crypto landscape. The performance of altcoins like XRP on these platforms remains a key indicator of broader market interest and potential growth areas.

Related: XRP Liquidity Signals Next Price Move

Source: Original article