Let's be honest, Binance isn’t Dominant Because It’s liked. It’s Dominant Because It’s Used.
For years, Binance has quietly carried the bulk of global crypto trading activity. Across market cycles, it has consistently accounted for roughly 65–80% of total exchange volume, spanning both spot and derivatives. That concentration matters because markets don’t move on participation alone. They move where liquidity is deepest and where capital is willing to take real risk.
Volume on other exchanges has grown, but growth hasn’t changed where price discovery happens. It has mostly expanded access while leaving leadership untouched. In 2023, this dynamic was especially clear. Binance dominated activity while many competing platforms functioned as retail-heavy or region-specific venues. The result was cleaner price action and stronger, more directional trends because liquidity wasn’t fragmented.
As conditions improved in 2024, capital began to spread out, as it often does during expansion phases. Still, Binance never lost control, particularly in derivatives, where leverage and positioning define market direction. Other exchanges saw higher activity, but when volatility returned, liquidity didn’t hesitate. It flowed back to where execution and depth were proven.
The same pattern repeated through 2025 and into 2026. Competing venues experienced periodic volume spikes, but they struggled to sustain momentum. Binance, on the other hand, consistently absorbed liquidity during every major market move. This isn’t a coincidence. When uncertainty rises, capital becomes selective, not experimental.
Some argue that growing activity elsewhere means the market is finally decentralizing. That sounds reasonable until stress enters the system. Most volume outside Binance remains spot-driven and risk-averse. It supports the ecosystem, but it doesn’t set direction. Risk is added on Binance and reduced elsewhere, which is why major volatility events usually start there, while rallies led by smaller venues often fade.
This isn’t about defending Binance as a company. It’s about acknowledging how markets behave. When Binance dominance rises, trends strengthen and volatility expands. In downturns or moments of instability, liquidity doesn’t scatter, it consolidates. And despite the criticism, it continues to consolidate in the same place.
Ignoring that reality doesn’t make the market more decentralized. It just makes the analysis less honest. The real question isn’t whether the market wants alternatives. It’s whether capital trusts them under pressure, and this also brought us back to my main question, If Binance truly stopped being central tomorrow, where would real liquidity go instead?