Binance Dominates Stablecoin Liquidity, Holding Over 71% of Centralized Exchange Deposits
Binance isn't just leading the stablecoin race—it's lapping the competition. The exchange now commands a staggering share of all stablecoin liquidity parked on centralized platforms.
The Liquidity Fortress
Forget a simple majority. Binance's vaults hold more than seventy percent of the total stablecoin deposits across major centralized exchanges. That's not a market lead; it's a liquidity monopoly. Traders vote with their wallets, and right now, they're casting an overwhelming ballot for Binance's deep pools and seamless conversions.
Why Dominance Matters
This isn't about bragging rights. Liquidity concentration of this magnitude reshapes the entire trading landscape. It dictates price stability, slashes slippage for large orders, and becomes the primary on-ramp for capital flowing into crypto. Other exchanges aren't just competing for users—they're fighting for a slice of the liquidity pie that Binance baked, iced, and now serves from its own table.
The Centralized Paradox
Here's the ironic twist: the industry built on decentralization now hinges on the overwhelming centralization of a single exchange's liquidity. It’s the ultimate finance jab—traders preach self-custody but park their most liquid assets in one giant, centralized vault for the sake of convenience. Binance's grip tightens not in spite of decentralization ideals, but because of them. Everyone wants to escape traditional finance, just not enough to split their stablecoins across a dozen different wallets.
The message is clear: in the battle for the future of money, liquidity is the ultimate weapon. And right now, one exchange holds nearly all the ammunition.
Stablecoins flowed out of exchanges in December
Stablecoin reserves on exchanges reached their yearly peak at the end of November, when Binance carried over $51B in stablecoin reserves. In total, $8B in stablecoins left exchanges in the final stretch of 2025.
Bybit saw the biggest outflows, with $2B leaving the exchange, while Binance had $2B in outflows.
Despite this, the markets have enough deposits to deploy in the case of a sentiment shift. Binance may become an indicator for buying pressure.
The accumulation of stablecoins is still not affecting the market, which is trading with thin holiday volumes and low sentiment metrics. Trading activity also slowed down, while whales slowly accumulated BTC on the spot market. The available buying power, however, is still not reigniting the HYPE or bringing BTC on the path to new all-time highs.
Liquidity flows to derivative markets
The overall trend for 2025 is for stablecoins to MOVE from spot to derivative markets. Spot markets briefly revived after the October 10 deleveraging.
Despite this, stablecoins are mostly active on derivative trading pairs, with significant outflows from spot markets. Derivative exchanges hold $64B in stablecoins as of December 29, with a peak on November 14 at over $68B.
Spot reserves saw the most significant outflows, from $5.7B down to $1.3B on all exchanges, based on Cryptoquant data. Spot buying has also lost some of the retail market, while whales accumulate with exact deposits.
While some traders buy the dip, the liquidity on derivative markets is waiting for momentum to set up new positions. Traders remain cautious, as accumulations of both long and short positions get attacked and liquidated.
Stablecoin minting is also no longer directly correlated with BTC price recoveries as during previous bull markets. The record number of stablecoins serves other use cases in 2025, and the expanded supply does not guarantee buying. s get attacked and liquidated.
Stablecoin minting is also no longer directly correlated with BTC price recoveries as during previous bull markets. The record number of stablecoins serves other use cases in 2025, and the expanded supply does not guarantee buying. rantee buying.
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