Top Highlights
-
Centralized Exchange Dominance: Binance now controls about 30% of all Bitcoin on centralized exchanges, highlighting increased liquidity concentration across a few major platforms.
-
Asset Concentration: Nearly 3 million BTC, valued at around $200 billion, remains stored with third-party intermediaries, showcasing a persistent industry reliance on centralized services despite past events like the FTX collapse.
-
Diverse Service Offerings: The rise of liquidity-driven services such as yield generation, lending, and derivatives has contributed to significant reserves on exchanges, reinforcing their role in the market.
-
Market Trend Divergence: While overall exchange balances grew, individual platforms saw mixed trends, with Binance’s holdings increasing and others like Gemini experiencing notable declines, reflecting evolving business models and regulatory landscapes.
One in Six BTC on Centralized Exchanges Despite FTX Collapse
Despite the fallout from the FTX collapse in 2022, a significant portion of Bitcoin remains on centralized exchanges. Currently, almost 3 million Bitcoin (BTC), valued at approximately $200 billion, sits on these platforms. This number represents about 15% of the total circulating supply, highlighting an ongoing trend in the cryptocurrency market.
Centralized exchanges, like Binance and Bitfinex, dominate this landscape. In fact, Binance holds around 30% of all Bitcoin on these platforms. This concentration of assets illustrates how liquidity and trading activity attract a substantial amount of BTC. Recent data indicates that Binance processed over 40% of trading volume on global exchanges in 2025. Their seamless services, such as lending and speedy transactions, elevate their standing among users.
Furthermore, while Binance saw an increase of over 22,000 BTC recently, other exchanges experienced outflows. For instance, Gemini faced the largest decline, dropping almost 13,900 BTC in the last month. These shifts reflect a dynamic market environment, influenced by individual platform strategies and user preferences.
As cryptocurrency exchanges evolve, some, like Kraken, are making moves toward IPOs, signaling a maturation of the market. And while regulatory landscapes shift, companies innovate to attract users. For example, Robinhood introduced the public testnet for its Ethereum Layer 2 network, underscoring its commitment to growth.
The ongoing concentration of Bitcoin on centralized exchanges suggests both strength and vulnerability in the market. Users continue to seek more from these platforms, contributing to advancements in technology and financial services. As the cryptocurrency space develops, this balance between user trust, innovation, and decentralization will remain critical.
Expand Your Tech Knowledge
Stay informed on the revolutionary breakthroughs in Quantum Computing research.
Stay inspired by the vast knowledge available on Wikipedia.
Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
CryptoV1
