Connect with us
DAPA Banner

Crypto World

Binance Causes Brutal Crash for Numerous Altcoins After a Single Major Announcement

Published

on

BNB Card


Some of the involved cryptocurrencies nosedived by over 80% after the disclosure.

The world’s largest cryptocurrency exchange announced a major delisting, following which most affected cryptocurrencies collapsed by double digits.

Prior to that, the firm temporarily suspended certain withdrawals and deposits and implemented additional amendments to its platform.

Advertisement

The Binance Effect

Binance Alpha (a dedicated platform inside the exchange’s ecosystem that showcases early-stage crypto projects) removed 21 altcoins, including WorldShards (SHARD), FreeStyle Classic (FST), Alliance Games (COA), BNB Card (BNB Card), MilkyWay (MILK), Hyperbot (BOT), and many more.

The company clarified that the sale of the impacted tokens will still be allowed after the removal. At the same time, it warned users to conduct proper research before trading the aforementioned coins to avoid any scams and protect their funds.

As is typically the case, many of the delisted digital assets headed south shortly after the disclosure. After all, Binance is the largest crypto exchange, and withdrawing support usually results in reduced liquidity, diminished availability, and a damaged reputation. MILK and SHARD fell by 6-7% daily, whereas FST and BNB Card nosedived by 70-80%.

BNB Card
BNB Card, Source: CoinGecko

A similar reaction was observed in late 2025 when Binance disallowed all services with Kadena (KDA), Flamingo (FLM), and Perpetual Protocol (PERP). Similar to FST and BNB Card, the involved altcoins crashed by double-digit percentages immediately after the news broke.

Other Recent Efforts

Earlier this week, the exchange supported an upgrade and temporarily paused withdrawals and deposits on the Ethereum network. The process was expected to take about an hour, after which operations were supposed to resume smoothly.

Advertisement

You may also like:

This is a routine procedure that Binance has executed flawlessly many times before. Over the years, it has taken similar measures to support upgrades across various ecosystems, including Cardano, BNB Smart Chain, and others.

Prior to that, Binance issued numerous listing announcements focused on U (United Stables) – a stablecoin launched last year and pegged to the American dollar. In January, it expanded the list of trading choices offered on its Spot section with the BNB/U, ETH/U, KGST/U, and SOL/U pairs.

In February, it added XRP/U, SUI/U, ASTER/U, and PAXG/U, while earlier this month it opened trading for AVAX/U, LINK/U, LTC/U, PAXG/U, and ZEC/U.

SPECIAL OFFER (Exclusive)

Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
Advertisement

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Source link

Advertisement
Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Crypto World

Stablecoins Dominate Crypto Trading as Retail Activity Drops: CEX.io

Published

on

Stablecoins Dominate Crypto Trading as Retail Activity Drops: CEX.io

Stablecoins were a rare bright spot in an otherwise subdued crypto market in the first quarter, with supply growth and transaction activity pointing to sustained demand even as broader market conditions weakened.

Total stablecoin supply increased by roughly $8 billion to a record $315 billion in Q1, according to data from CEX.IO. Although this marked the slowest pace of expansion since Q4 of 2023, it still represented growth during a period when the wider crypto market contracted.

The data suggests investors rotated into stablecoins as a defensive strategy, boosting their share of overall market activity. Stablecoins accounted for 75% of total crypto trading volume during the quarter — the highest level on record.

Stablecoins’ share of total digital asset trading volume exceeded its 2022 peak. Source: CEX.io

At the same time, total stablecoin transaction volume topped $28 trillion, underscoring their growing role as the primary liquidity layer of the digital asset market. The figure extends a multi-year surge in activity, with stablecoin volumes in recent years exceeding those of major payment networks like Visa and Mastercard combined.

However, data on underlying activity painted a more nuanced picture.

Advertisement

Retail-sized transfers — typically associated with individual users — declined by 16% in the first quarter, the steepest drop on record. In contrast, automated activity surged, with bots accounting for approximately 76% of all stablecoin transaction volume.

The shift toward bot-driven flows suggests that a growing share of stablecoin usage is tied to algorithmic trading, arbitrage and liquidity provisioning, rather than retail demand. While elevated automation can reflect more sophisticated or institutional participation, it may also signal weaker organic demand during bearish market conditions. 

Related: Circle shares surge as Bernstein sees upside from stablecoin adoption

Divergence between major stablecoin issuers

One of the CEX.io report’s key takeaways was a widening divergence between major stablecoin issuers. The supply of Circle’s USDC (USDC) grew by roughly $2 billion in the first quarter, while Tether’s USDt (USDT) declined by about $3 billion, marking the first notable split between the two since Q2 of 2022 amid the bear market.

Advertisement

The trend aligns with earlier Cointelegraph reporting, which highlighted a surge in USDC transfer activity in February, pointing to increased usage across trading and onchain transactions.

USDC is now more widely used for “financial operations,” which include trading and onchain transactions. Source: CEX.io

Beyond USDC, much of the growth in stablecoin issuance was driven by yield-bearing products — a segment that has drawn increasing scrutiny in the US. Ongoing discussions around a crypto market structure bill in Congress have placed yield at the center of debate, with traditional banks pushing back against stablecoins that offer interest-like returns.

The market for yield-bearing stablecoins is currently valued at around $3.7 billion, with daily trading volumes exceeding $100 million, according to data from CoinGecko.

Related: Crypto Biz: Stablecoin jitters meet institutional momentum