Binance Records Record Stablecoin Inflow, Fueling Derivative Market Growth

Binance continues to experience a surge in stablecoin deposits, setting a new record for ERC-20 reserves. The exchange’s dominance in leveraged trading, where stablecoins are crucial for constructing positions, reinforces this trend. 80% of all stablecoin inflows are directed towards derivative exchanges, primarily due to the prevalence of leveraged positions for BTC and ETH. While spot exchanges witnessed a smaller share, this is largely attributed to Binance’s market leadership. 2024 has seen a period of significant growth in stablecoin inflows on Binance, though later on, activity slowed down but the amount remains high.