#binance $BNB

Binance keeps drawing higher stablecoin deposits, reaching a record level of ERC-20 reserves. The exchange leads leveraged trading, where stablecoins are key to building new positions.

Binance remains the leader for stablecoin reserves, as most traders picked the market operator as their main trading venue. Inflows of stablecoins boosted derivative markets, setting up the stage for peak available liquidity.

The inflows of stablecoins into Binance went vertical in the last months of 2024, but slower growth continued in the first quarter of 2024. Despite the market slowdown, the supply of stablecoins remains high, and the assets are waiting on the sidelines for an opportunity to trade. Stablecoins expanded as a way to lower risk. During this market cycle, the supply of stablecoins is growing, even as the crypto market suffers a 30% drawdown from the peak.

Stablecoins on Binance expanded to levels above the 2021 bull market, based on demand for derivative trading positions. | Source: Cryptoquant

The stablecoin inflows mostly reached derivative exchanges, with the supply peaking at over 47B tokens. Spot exchanges attracted a much smaller share of stablecoin turnover, as most of the activity depended on leveraged positions for BTC and ETH.

Stablecoin inflows boost derivative trading

The total supply of stablecoins on exchanges reached 45B tokens of various types, with USDT and USDC still the most common. Binance carries over 33B tokens, including its centrally controlled FDUSD. Binance has a total of $3.38B in USDC, $29.4B in USDT, and another $1.5B in FDUSD. The exchange also carries the most active trading pair for USDT, with $1.67B in 24-hour volumes.