Binance leads in volume but loses liquidation race – Understanding how…
In 2025, Binance leads spot volume, but liquidity-fueled exchanges like Gate.io dominate BTC liquidations.
- Binance dominated spot volume, but Gate.io and OKX led in BTC liquidations due to liquidity.
- High liquidity drives faster unwinding, making smaller exchanges the surprising leaders in liquidation activity.
In a year marked by shifting tides and institutional resurgence, Binance is making moves. This time, its spot trading volume is poised to eclipse that of all other crypto exchanges combined!
While that might suggest total dominance, 2025 has delivered a twist: Binance is not leading the charts in trader liquidations.
According to Joao Wedson, CEO of Alphractal, the answer lies in something many overlook, but few can afford to ignore — liquidity.
Binance’s Spot Volume surge shows institutional strength
After months of subdued competition, Binance’s spot trading volume is once again outpacing all other exchanges… and not by a small margin.
According to Wedson, the chart below shows how Binance is nearing a historic crossover: its BTC spot volume delta is on the verge of flipping positive against the combined total of its competitors.
This mirrors a similar pattern seen in early 2024 after the launch of the Bitcoin ETF, when institutional appetite triggered a massive inflow into Binance.
Back then, this volume surge preceded a major rally in Bitcoin’s price; a scenario that seems to be repeating in 2025.
When smaller players lead the game
While Binance remains the most dominant player in crypto trading by volume, it surprisingly doesn’t top the Bitcoin liquidation charts in 2025.
Gate.io and OKX have surpassed Binance in total BTC liquidations, with Gate.io reaching nearly $10 billion – a figure that dwarfs Binance’s $2.5 billion.
This trend flips the narrative, suggesting that liquidation dominance doesn’t always mirror exchange popularity.
Historical data from 2018 to 2025 further emphasizes this shift, revealing how the exchange once led by a wide margin but now faces rising liquidation volumes from once smaller competitors.
The real power play
High liquidity leads to tighter spreads, deeper order books, and faster execution. However, it can also trigger more liquidations during volatile swings.
While Binance dominates in size, emerging platforms provide highly responsive trading environments that amplify leverage dynamics. These platforms attract aggressive traders, making them liquidation hotspots.
Liquidity acts as a force multiplier. It dictates how fast positions unwind and who tops the liquidation charts. Often, the most dominant platforms aren’t the biggest, just the fastest.
