Binance's Q2 spot and futures trading volume drops by over 60%, institutional investors still bullish on Binance: Liquidity will attract liquidity
The second-quarter report from data platforms DefiLlama and Kaiko indicated that both spot and futures trading volumes on Binance dropped by over 60% in the second quarter, with outflows reaching $4 billion in June. The market share of futures on various exchanges also increased significantly month by month. However, trading institutions believe that Binance will continue to be a focal point for market liquidity.
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Binance Update
Binance Outflows Near $4 Billion in June
According to DefiLlama, Binance has seen nearly $4 billion in outflows over the past 30 days, more than double the $1.563 billion in May and the worst performance since December last year.
Spot Trading Market Share Drops to 53% in Q2
Factors including regulatory pressure from the SEC and CFTC, the end of spot trading fee discounts, among others, have led to a drop in Binance's spot trading volume from 64% to 53%, with trading volume plummeting by 70% since Binance introduced zero trading fees for several Bitcoin spot trading pairs in July 2022.
However, exchanges like Coinbase, Kraken, OKX, and Huobi have also experienced over a 50% decline in trading volume in the second quarter, indicating an overall contraction in trading activities.
Binance's Futures Market Share Falls Below 60%
Binance's futures market share significantly increased after FTX declared bankruptcy reorganization, starting at around 66% at the beginning of the year but has now dropped to 56.7%.
Meanwhile, the futures market share of various exchanges has been increasing month by month.
Institutions: Binance Still a Liquidity Focus
Despite facing lawsuits and regulatory challenges in Europe since the first half of the year, including difficulties in obtaining licenses, and the launch of compliant exchanges like Citadel, Fidelity, and JPMorgan's DEX, as well as traditional financial institutions entering the Bitcoin spot ETF market, Binance seems to be in a difficult situation.
Nevertheless, Binance remains massive, with a daily trading volume exceeding $8.2 billion and an asset size exceeding $60 billion.
DLNews cited institutional traders as saying:
Investors will continue to make markets on Binance, which remains the focus of liquidity because liquidity attracts liquidity.
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