Recent market dynamics, including the U.S. presidential election, Bitcoin hitting a new all-time high (ATH), and positive signals from the overall financial industry, have combined to drive a surge in market activity and create an extremely active cryptocurrency market environment. The growth in demand has not only attracted more users to participate, but also further highlighted the important position of crypto assets in the mainstream financial system.
Cryptocurrencies are gaining prominence in financial markets
Comparing the trading volumes of major cryptocurrency platforms with traditional stock markets, an eye-catching trend emerges. Over the past 30 trading days (October 7 to November 15, 2024), Binance’s total trading volume (spot + derivatives) significantly exceeded the data of major global equity markets:
Source: Binance and Coinbase trading volume (including spot + derivatives); CoinMarketCap, Binance, Coinbase; Nasdaq/NYSE data source: https://www.nasdaqtrader.com/trader.aspx?id=FullVolumeSummary#
Binance’s trading volume is 10% higher than Nasdaq’s;
twice as large as the New York Stock Exchange (NYSE);
16 times that of Coinbase;
And accounts for about 50% of the global centralized exchange (CEX) trading volume.
These data fully demonstrate that crypto assets are becoming more and more popular among investors, gradually moving from the margins to the core of mainstream finance. Compared with the traditional financial market, cryptocurrencies are gradually becoming equal, and this trend also reflects the continued increase in the influence of crypto assets in the global financial landscape.
Spot trading dominates the market
A notable feature of the Bitcoin market in 2024 is that spot trading occupies a dominant position in all types of trading activities. Although institutional investors have shown significant interest in Bitcoin ETFs, their market share remains relatively small. Data shows that Binance’s Bitcoin trading volume is 4.5 times that of all Bitcoin ETFs combined, underscoring the overwhelming advantage of spot trading. Whether they are retail investors or high-frequency traders, they still prefer to choose the spot market with unparalleled liquidity and accessibility.
Judging from the spot Bitcoin trading volume from the beginning of the year to date, spot trading still occupies a core position in the Bitcoin market. Major exchanges such as Binance have created historically high trading volumes, further consolidating their market leadership. This shows that for retail and institutional investors, the activity and vitality of the Bitcoin market far exceeds expectations, and the spot market continues to dominate trading activity and liquidity.
Data sources: Binance and Coinbase trading volume (including spot + derivatives); CoinMarketCap, Binance, Coinbase; Nasdaq / New York Stock Exchange data source: https://www.nasdaqtrader.com/trader.aspx?id=FullVolumeSummary#
Binance is the absolute leader in Bitcoin trading, with a trading volume that is seven times that of Coinbase, and even equivalent to the sum of the next 14 competitors including other centralized exchanges and DEX aggregators.
The trend also shows that trading volume is concentrating on a few key platforms, with Binance leading the way by a significant margin. Top cryptocurrency exchanges attract and retain the vast majority of trading activity through centralized liquidity, robust infrastructure, and competitive pricing.
Although Bitcoin ETFs are seen as an important channel for institutional funds to enter the crypto market, their contribution to the overall market remains limited. This also shows that the depth and vitality of the spot trading market may be underestimated. The continued dominance of the spot market further emphasizes its core position as the foundation of Bitcoin liquidity and price discovery. Although the ETF market may grow in the future with the increase in institutional participation, the current market focus is still on the booming spot market.
USDT inflows reflect market health
Another trend that shows a strong bull market signal is the inflow of USDT into centralized exchanges. During the U.S. presidential election week, the total amount of USDT inflows into major exchanges exceeded $20 billion, with Binance leading with $7.7 billion in inflows, followed by Coinbase with $4.3 billion, and $6.5 billion from other exchanges.
Tether’s (USDT) market capitalization hit a record high of $128 billion this week, indicating that both market liquidity and stability remain at high levels, reflecting the continued growth in demand for crypto assets from both institutional and retail investors.
Judging from the USDT inflow data from November 1 to 19, Binance's market share was 39%, Coinbase was 23%, and other exchanges accounted for 38% in total.
Data source: CryptoQuant, data time range: November 1, 2024 to November 19, 2024 https://cryptoquant.com/community/dashboard/67323fb78a32550757517a22
As more and more traditional investors and institutions enter the crypto market, crypto assets are gradually being integrated into the global financial system. The increase in market activity not only improves liquidity, but also creates a virtuous circle, further promoting the expansion of the crypto market.
At the same time, the market is becoming more and more concentrated on leading platforms. As industry leaders, major exchanges such as Binance have played an important role in promoting the mainstreaming of crypto assets and enhancing market stability.
