- Liquidity in the cryptographic world is concentrated in the main platforms.
- Binance has seen growth, increasing its volume from 38.3% to 64.3% since 2021.
- Despite the benefits of concentrating liquidity, the crypto industry is primarily about decentralization.
The ever-evolving cryptocurrency universe is facing a trend that challenges idealized views of decentralization: concentration of liquidity. The latest figures suggest a significant change in the distribution of liquidity on major exchange platforms.
Binance has been leading the cryptocurrency market for years. However, its rapid growth has attracted attention recently. According to a report by research firm Kaiko,
Decentralization or concentration?
The essence of cryptocurrencies lies in decentralization. However, Kaiko makes an important point:
This observation is important, because it shows a visible difference between Industry values ​​and market realities.
Regulatory policies, especially in the United States, have a significant impact on altcoin liquidity. Kaiko pointed out that it was Liquidity suffered and was heavily concentrated in the three main exchanges: Coinbase, Kraken and Bitstamp. In addition, they added:
The numbers show an undeniable fact: liquidity in the crypto world is increasingly concentrated on a few leading platforms. While this trend may be beneficial for some investors looking for stability, it also raises questions about the future of decentralization in the crypto ecosystem.
