A report, seven perspectives, clarifying the Matthew effect of exchanges and the underlying logic of security.

CoinGecko's latest released (2025 Q1 cryptocurrency industry report) is recommended for everyone to take a look, reflecting many conditions in the market this quarter:

Clearly, this is not a calm quarter:

Liquidity contraction, regulatory strengthening, emotions fluctuating: unclear Fed policies, severe macro volatility, meme fever cooling down, frequent FUD;

So what we see is all 'noise', 'declines', and 'anxiety';

In addition to the major data reflecting the market cooling situation, such as total market value decline, daily trading volume decrease, and the rise of Bitcoin's dominance;

The most interesting thing is some data from CEX and the interesting phenomena of how everyone votes with their feet in choosing exchanges;

Data shows:

In the first quarter of 2025, the total spot trading volume of the world's top ten centralized exchanges (CEX) reached $5.4 trillion, a quarter-over-quarter decrease of -16.3%;

But it is precisely under such conditions of severe market and emotional fluctuations that we see a new pattern in the CEX world:

This article mainly studies the choice logic and security logic behind CEX—

1️⃣ Binance firmly holds the top spot, with a market share of 40.7% behind its safety logic—

As of the end of March 2025, Binance continues to hold the CEX lead with a market share of 40.7%.

'The strong get stronger', but this strength is not just about traffic and hype; it is built on the most overlooked yet most error-prone first principle in the industry—
Safety.

CoinGecko data shows that apart from top traffic and user accumulation, Binance's standout points include:
1) System online rate under high concurrency (99.99%);
2) Stable custody of user assets and on-chain verifiability;
3) Smooth fund inflow and outflow, covering multiple fiat channels worldwide;

This industry is evolving rapidly, but one thing remains unchanged:
Safety and stability are the most fundamental needs in the Web3 black forest.

2️⃣ OKX Platform: Rapid User Growth and Compliance Challenges—

CoinGecko's latest data shows:

Although OKX's trading volume has slightly retreated, it remains one of the strongest players in derivatives, contract trading, and hot asset liquidity;

Source of heat:
Strong contract depth: OKX has deeply cultivated the derivatives market for many years, attracting a large number of high-frequency traders and professional players;
Meme coins and active on-chain ecology: As one of the few mainstream CEXs and Wallets embracing new ecology (such as BRC20, ZK rollups, MeMe), OKX is keeping pace faster than anyone else;
APP experience & Web3 wallet layout is well-developed: the mobile + wallet interaction experience has been rated 'beyond Coinbase' by many users.
Challenges also clearly come from: user structure leaning towards short-term hot money, insufficient 'autonomy' of the ecology, and emerging compliance pressures;
In short, it's a CEX full of vitality, with a promising future!

3️⃣ Other platforms: clear differentiation trends｜Who is crossing cycles? Who is stuck halfway up the mountain?

The performance of other CEXs is equally thought-provoking:
Upbit: As the leading local player in South Korea, despite geographical limitations, its market share continues to grow, indicating that the localized deep cultivation strategy is effective;
Bybit: Maintaining relatively impressive active data through 'strong topicality + aggressive promotion' and 'optimizing coin listings', with striking activity levels;
Coinbase: A stable representative, but also shows signs of 'growth bottleneck', relying more on brand credibility and compliance user accumulation, with limited new space.
KuCoin / HTX / Gate, etc.: Many have seen declines, with some platforms affected by regulatory pressure and a decline in brand trust, reflecting the vulnerability of the 'FUD era'.

4️⃣ The overall trading volume of CEX has declined, which actually reflects the differentiation trend of users 'voting with their feet':

A core insight from the CoinGecko Q1 report for us:

In times of trading volume contraction and market decline, the platforms chosen by users actually reflect a 'trust ranking'—rather than a popularity ranking.

The wild era has passed, and people are no longer paying for high APRs and high heat but are judging the long-term value of the platform based on sustainability and fund security.
Safety in this part of CEX is becoming increasingly important!

The strong get stronger, and the Matthew effect has already formed a momentum in CEX. Safety should be the first principle of exchanges; everything else is secondary.

If there is sustained trust, prominent compliance, and substantial backing, then people will trust you more; if not, it will fall into a vicious cycle.

CEX exchanges are no longer the best entrepreneurial opportunity in the crypto circle. If you have not secured your advantageous position now, it will basically be irrelevant to you in the future.

5️⃣ Discussion on the Security of Exchanges｜Finding the safest place amidst on-chain transparency and complex reality.

Speaking of this, we can explore what kind of CEX is the safest, or relatively the safest;

We can start from the 'first principles' and break down a core logic line:

1) Safety is not about avoiding incidents, but rather 'being able to control it when incidents occur'—

All systems face risks, but the core of a secure system is: when risks occur, can they be detected, isolated, and mitigated?
This includes: anomaly detection in system-level transactions, user asset custody and hot/cold wallet separation, employee permission control and internal control processes, on-chain transfer transparency;
A truly secure CEX is not one that is not attacked, but one that 'does not lose user funds when attacked', so it must have sufficient asset reserves and 1:1 fund proof; misappropriating user assets is a bottom line that no exchange can cross;

2) Safety is 'the verifiability of the trust system'—

Where does the sense of security come from? From 'I know where the money is'.
A safer exchange must at least achieve: an asset reserve proof mechanism, allowing users to verify whether the exchange truly has 'coins in and out, accounts match'; on-chain audit trails, with every on-chain transfer publicly queryable;
Liabilities and liquidity must be transparent to avoid situations where 'user assets are lent to others without anyone knowing';
Safety is not a black box; it is 'you can see its accounts at any time'.

3) Safety also includes compliance and stress resistance—

A truly safe platform must comply with regulations, and continuing stable operations amidst regulatory shocks may be the most valuable CEX in the future, no exceptions.
Although this seems to split the concept of a WEB3 decentralized idea, it requires certification and compliance from centralized institutions;
But this is not just about having a license, but rather:
Is there a reliable deposit and withdrawal system?
In the face of sudden policies, is there an emergency switch capability?
From a legal perspective, can it connect user legal claims with a stop-loss mechanism?
Currently, regulation serves these purposes;
Whether a platform can restore services within '72 hours of a sudden incident' is a real test of its safety.

4) Safety must be built at the system level and process level, not just 'shouted trust'—

Is there a comprehensive disaster recovery system (disaster recovery plans, cold backups, distributed databases), is there a multi-signature wallet + permission isolation mechanism to prevent 'one person's wrongdoing from dragging the whole platform down', and has an internal audit + third-party audit mechanism been established to reduce systemic loss of control;
These are very boring, very technical, but they are the 'confidence to go all-in'.

Finally, summarize a judgment standard:

A truly safe CEX is a platform that 'you are willing to put your assets into, even if you don't check for a month, you can still sleep soundly'.

It will not be chaotic because of airdrop trends or meme hotspots, nor will it 'go into emergency maintenance' due to a hacker attack, and it certainly will not collapse because of the departure of a certain executive. Most importantly, it has been tested by time and practice, and is a CEX with regulatory advantages.

6️⃣ So back to your question: Who is the safest CEX?

This answer may differ in everyone's mind, but on the level of data and facts, there are only a few that are capable:

Binance: The strongest pressure resistance globally, the highest system stability, and the best asset liquidity, with increasing transparency year by year;

OKX: Rapid user growth, high heat, and sufficient system stability;

Coinbase: The strongest compliance credibility in the US market + checks and balances of public company audits;

Upbit: Deeply rooted locally with very strict risk control, suitable for high-net-worth individuals in the South Korean market;

Kraken: Niche but stable, suitable for long-term users.

7️⃣ Conclusion—

Markets will cycle, projects will blow up, narratives will be rewritten, traffic will migrate,

But the CEXs that can survive through rounds of liquidity winters have one common point:

Whoever can maintain the lowest 'trust firewall' is who we choose:

In every cycle, many exchanges rise based on hype; some rely on new rhythms, some on topic explosions, and some on extreme operations to capture the market in a short time.

But now, the entire industry is increasingly approaching a realistic and cruel consensus:

Those who truly cross cycles are not the ones who rise quickly or roll fiercely, but those who can maintain their systems, assets, and users when emotions are at their lowest and trust is at its weakest.

Therefore, the real value of this report is not to tell us how much trading volume has declined, but to help us see: under the multiple pressures of black swans, liquidity decline, and policy pressure, which platforms still stand firm, hold on, and win users' 'votes with their feet'.

Finally, let's make a statement for Binance:

After experiencing multiple bull and bear markets, it is found that whenever the market is bad, it starts to favor FUD and conspiracy theories. For example, Binance is often severely FUDed, and many times, 'criticizing Binance' has become like a crypto version of 'political correctness', even turning into an eye-catching SEO tactic.

When emotions are low, some people always need to find an outlet, but is this really right?

We all know that the survival rules in this industry are very cruel: when prices rise, no one questions; when they fall, all problems are magnified.

But countless practices have proven—

Users ultimately vote with their feet.

You can question its expansion, question its products, question its strategies,
But you cannot deny: at countless points of 'on-chain congestion, market crash, regulatory attacks', more people still put their money into Binance;

This world is too good at using emotions to cover facts, using sarcasm to mask fear.

But in the high-risk, high-volatility black forest of crypto, we should not look at what others are saying, but at what others are doing!

This is not a stance; it is a fact.