Recent data shows that Binance has reached a historical level of control over exchange-based stablecoin liquidity, raising concerns about potential risk concentration.
Dominance of Binance in Stablecoin Liquidity
As of Q3 2025, Binance controls 67% of all exchange-based stablecoin liquidity, amounting to $44.2 billion out of a total market of $68 billion. This surge is attributed to increased USDT/USDC inflows.
Institutional Inflows and Market Recovery
Institutional inflows of $1.65 billion into Binance suggest growing confidence in recovering crypto markets, potentially benefiting major cryptocurrencies like Bitcoin and Ethereum. However, retail investors are expressing concerns about liquidity centralization.
Market Patterns and Liquidity Risks
Historically, liquidity events have preceded significant market movements. For instance, similar conditions in March 2025 led to a notable BTC rally. Experts warn about potential systemic risks related to high liquidity concentration.
The liquidity of stablecoins on Binance demonstrates sustained growth; however, high levels of concentration raise serious concerns about the future stability of the cryptocurrency market.
