In the increasingly heated context of #ETF , #Binance still dominates liquidity, what does it mean?
Despite the daily trading volume of the US Bitcoin spot ETF reaching $5-10 billion, Binance's BTC/ETH spot trading peak days still reached $18 billion and $8.8-11.1 billion respectively, maintaining its position as the market leader. This reveals several key points:
1️⃣ Institutional adoption ≠ liquidity center
The role of ETFs: As a compliant entry channel for institutions, ETFs do not enhance the overall trading efficiency of the crypto market.
Binance's advantages: It remains the preferred platform for global retail, Asian funds, arbitrage strategies, and quantitative trading, supporting innovation in various trading products, including derivatives and leveraged trading, to meet different investors' needs.
Market dynamics: ETFs represent 'who is buying,' while Binance represents 'where the market is really moving.' Trading volume, user activity, and market dominance are all held by Binance.
2️⃣ The 'power of liquidity' has not yet gone mainstream
Dependence on trading ecology: Despite institutional investors beginning to accept BTC, the entire trading ecology still relies on the depth, matching efficiency, and low fees provided by Binance.
Infrastructure advantages: ETFs lack order books, and trading cannot be freely matched, while Binance offers extremely low latency and high-frequency trading support, making it an irreplaceable platform for market makers, arbitrageurs, and Web3 users.
The status of CEX: This means that centralized exchanges (CEX) are still the 'engine' of the entire crypto market, with ETFs as the entry point and Binance as the engine.
3️⃣ The regulatory battle is not over
Challenges of shifting dominance: The US is trying to shift dominance from offshore exchanges like Binance to compliant ETFs and trading platforms, but the current results show:
Regulation has not successfully redistributed market dominance.
Binance's position indicates that global users still prefer a trading environment with low barriers, 24/7 availability, and high efficiency.
4️⃣ Web3 investors vs TradFi investors
Investor characteristics:
ETF investors focus on allocation logic and risk exposure.
CEX users place more emphasis on trading experience and opportunity cost.
Activity comparison: Behind Binance is a community of 'Web3 natives' with activity levels far exceeding those of ETFs.
✅ Summary
Binance still dominates trading liquidity; although ETFs represent a victory for compliance, Binance represents a victory for trading.
