Despite the significant fallout from the FTX collapse, approximately 3 million Bitcoin (BTC), valued at around $200 billion and accounting for 15% of the circulating supply, is currently held on centralized exchanges. This statistic highlights a continued trend of asset concentration on trading platforms, even amidst increased advocacy for self-custody.
Data revealed by crypto analyst Darkfost indicates that the dominance of centralized exchanges has increased in recent months, with many platforms now offering a variety of services such as yield generation and collateralized derivatives. Such offerings necessitate the retention of substantial Bitcoin reserves to ensure liquidity for users. As a result, Binance has emerged as a major player in this space, holding approximately 30% of all Bitcoin stored on centralized exchanges.
Following Binance, Bitfinex controls nearly 20% of these reserves, while both Robinhood and South Korea”s Upbit each account for about 8.2%. Other exchanges like Kraken, OKX, and Gemini collectively hold between 5% and 7%. The figures illustrate a pronounced concentration of Bitcoin on a few leading platforms, which is further emphasized by absolute holdings.
According to CoinGlass data, Coinbase Pro stands out as the largest holder among exchanges, with around 792,000 BTC. Binance follows closely with nearly 662,000 BTC, while Bitfinex holds roughly 430,000 BTC. The ongoing trading volume supports this trend; a report from CryptoQuant earlier this year noted that Binance captured over 40% of the spot and Bitcoin perpetual volumes across major exchanges.
The $200 billion currently on centralized exchanges reflects a complex market landscape. While overall exchange reserves have increased, individual platforms have seen varying trends. For instance, Binance added more than 22,000 BTC in the past month, whereas other platforms like OKX and Bithumb experienced outflows exceeding 2,700 BTC and 3,600 BTC, respectively. Notably, Gemini saw the largest decline, with a drop of nearly 13,900 BTC over the same period.
These fluctuations occur against a backdrop of evolving business models and regulatory frameworks within the cryptocurrency industry. Kraken has taken steps towards an initial public offering (IPO) by filing confidentially with the U.S. Securities and Exchange Commission (SEC) following a substantial funding round that valued the exchange at $20 billion. Meanwhile, Robinhood, which holds approximately 8.2% of exchange Bitcoin reserves, recently introduced the public testnet for Robinhood Chain, an Ethereum Layer 2 network aimed at enhancing the development of tokenized assets.
