Crypto exchange Binance is seeing a continual decline in liquidity. According to exchange data received on Tuesday, stablecoin volume on the trading platform has reduced by 1.75 billion over the past month, marking a period with one of the sharpest stablecoin pullbacks.
Binance liquidity continues to shrink fast
The following chart displays the liquidity on exchanges by flows that have gone in and out – averaged over a month. Since October, the months have followed one another with the same pattern.
In addition to $1.75 billion worth of stablecoins being pulled from Binance, rival crypto exchange OKX saw a similar trend, with more than $605 million withdrawn. Crypto exchange Bybit saw $321 million flee, while other smaller exchanges saw an average withdrawal of $311 million.
It’s now been nearly a year since stablecoins started leaving exchanges, with figures still just as striking on Binance, which alone accounts for approximately 70 percent of the stablecoin supply held on exchanges.
This points to persistent investor disinterest in the crypto market.
The above insight is hardly surprising when seen against a backdrop of BTC’s recent performance, down around 48 percent since October. In contrast, the S&P 500 is up 18 percent, while Nasdaq has appreciated by 23 percent in the same period.
What’s even more concerning is that any positive macroeconomic data is unable to have any meaningful impact on BTC’s price. For instance, the lower than expected U.S. CPI print earlier this month barely moved BTC upward.
A net positive for Binance
While the tumble in stablecoin volume is definitely concerning for the wider crypto market, it has, inadvertently, helped Binance increase its market share in terms of holding total stablecoin reserves.
According to data, Binance’s share has risen from roughly the low 60 percent range – around late 2025 – to 68.5 percent currently, while the combined share of several competitors has contracted.
On a more granular level, Binance’s USDC stablecoin reserves fell to 2025 lows on July 13. In another setback for Binance, the crypto trading platform had to shut its NFT service amid non-existent demand for the offering.
