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New Report Finds Where All the Money Went in Crypto’s Brutal Q1

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The crypto market traded $20.57 trillion in Q1 2026, but declining volumes and concentrated liquidity told a story of cautious recovery, not euphoria.

A new quarterly research report from CoinGlass breaks down how capital, trading activity, and market depth shifted among exchanges during the first three months of the year. The findings paint a picture of a market still digesting the aftershocks of late 2025.

A Market Still Healing From Q4’s Crash

Q1 2026 unfolded against a difficult backdrop. The October 2025 tariff shock triggered $19 billion in liquidations within 24 hours, the largest single-day deleveraging event in crypto history.

Bitcoin (BTC) declined roughly 35% from its all-time high above $126,000, and open interest across exchanges dropped more than 40%.

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By January, signs of stabilization had appeared. Total market volume for the quarter reached approximately $20.57 trillion, split between $1.94 trillion in spot and $18.63 trillion in derivatives.

However, each successive month saw lower totals. January posted the highest activity, and March fell to the quarterly low.

The derivatives-to-spot ratio held at roughly 9.6x throughout the quarter, slightly above the 2025 full-year average.

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That ratio suggests traders preferred hedging and short-term positioning through futures rather than making directional spot bets.

Binance’s Lead Extends Across Every Metric

The CoinGlass report measured exchanges across four dimensions, including trading volume, open interest (OI), order book depth, and user asset reserves. Binance ranked first in all of them.

In derivatives, Binance posted approximately $4.90 trillion in cumulative volume, a 34.9% share among the top 10 exchanges.

That figure exceeded the combined totals of OKX ($2.19 trillion) and Bybit ($1.49 trillion). In open interest, Binance averaged $23.9 billion daily, roughly 2.2 times second-ranked Bybit.

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Binance Tops Derivatives Volume Rankings
Binance Tops Derivatives Volume Rankings. Source: Coinglass

Liquidity depth told a similar story. In BTC futures, Binance’s average two-sided depth within 1% of the mid-price was approximately $284 million.

OKX followed at $160 million and Bybit at $76.55 million. The pattern repeated across BTC spot, ETH futures, and ETH spot markets. No single competitor matched Binance across all four sub-markets simultaneously.

The starkest gap appeared in user asset reserves. Binance held approximately $152.9 billion in custodial assets, accounting for 73.5% among the top 10 exchanges. OKX was a distant second at $15.9 billion. Gate, Bitget, and Bybit all fell within the $5 to $7 billion range.

That concentration far exceeds Binance’s share in trading volume or open interest. The CoinGlass report noted that asset retention reflects brand trust, product ecosystem breadth, and on/off-ramp convenience, making it a stronger indicator of long-term competitive position.

Hyperliquid Enters the Mainstream Conversation

One of the quarter’s most notable developments was the rise of Hyperliquid (HYPE), a decentralized derivatives protocol that posted approximately $492.7 billion in Q1 trading volume.

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That placed it inside the top ten.

Hyperliquid among top 10 in open interest ranking
Hyperliquid among top 10 in open interest ranking. Source: Coinglass

Its average daily open interest of roughly $6.0 billion, with a peak of $9.7 billion, drew close to that of centralized competitors like Bitget.

The growth validated what CoinGlass’s 2025 annual report had predicted, that decentralized derivatives were transitioning from proof-of-concept to actual market share competition.

JPMorgan flagged Hyperliquid in a March report, noting that demand for round-the-clock access to traditional assets was driving decentralized exchange growth and taking share from mid-tier centralized platforms.

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Grayscale also filed an S-1 for a HYPE ETF in March, seeking a Nasdaq listing.

For now, Hyperliquid’s scale remains significantly below the leading centralized exchanges.

However, its entry into the competitive arena adds pressure to second-tier platforms competing for derivatives market share.

What Comes Next

The CoinGlass report identified several variables to watch heading into Q2. These include:

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  • The Federal Reserve’s monetary policy path,
  • Changes in BTC spot ETF fund flows, and
  • The progress of regulatory framework implementation across major jurisdictions.

Q1 was not about a return to all-time highs. It was about recovery, concentration, and a shifting market structure that is drawing clearer lines between the platforms that attract capital and those that risk falling behind.

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Stablecoins Moved More Money Than the US Financial System’s Backbone

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Stablecoin monthly transaction volume reached $7.2 trillion in February 2026, overtaking the Automated Clearing House (ACH) network’s $6.8 trillion for the first time.

The ACH is an electronic payment network in the United States that enables transfers directly between bank accounts. It has become the most widely used infrastructure for handling electronic money movement across the country.

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It’s a symbolically significant milestone showing how massive crypto payment rails have become. The February crossover did not happen in isolation.

Artemis data shows that stablecoin volume climbed further in March, reaching $7.5 trillion. That figure matched ACH over the same period.

Meanwhile, the stablecoin market has continued to grow. DefiLlama data showed that the market capitalization surpassed $316.7 billion, setting a new all-time high. 

Notably, a recent report revealed that stablecoins dominated crypto markets in Q1 2026. They made up 75% of total trading volume, the largest share on record. 

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Overall transaction volume exceeded $28 trillion during the quarter, marking another all-time high. However, according to CEX.IO, automated trading played a major role, with bots responsible for 76% of the volume, the highest proportion seen in the past two years.

“Q1 2026 made the 2022 comparison hard to ignore. Stablecoin dominance rising sharply, capital rotating defensively, USDT and USDC diverging, automation surging, and retail pulling back — these patterns appeared together in mid-2022, and they are reappearing now. If broader bearish conditions persist through the year, stablecoins could see further demand and dominance gains in the coming quarters,” the report read.

The rising volumes reflect more than speculative activity. It also highlights the expanding use of these assets in real-world applications, including business-to-business (B2B) payments, cross-border transactions, and other financial activities.

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The post Stablecoins Moved More Money Than the US Financial System’s Backbone appeared first on BeInCrypto.

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IMF Says Tokenization Is a ‘Structural Shift’ in Finance, Not Just a Tech Upgrade

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IMF Says Tokenization Is a 'Structural Shift' in Finance, Not Just a Tech Upgrade

The International Monetary Fund also warns that the distribution and speed of on-chain transactions bring new challenges and risks that require international coordination.

In a new staff research note published on Thursday, The International Monetary Fund (IMF) argues that tokenization represents a “structural shift in financial architecture,” not just an incremental efficiency gain.

Authored by Tobias Adrian — the IMF’s Financial Counsellor and Director of the Monetary and Capital Markets Department — the report focuses on the tokenization of real-world assets (RWAs) within the regulated financial system, namely banks, finance infrastructure, and asset managers, arguing that’s where “the most consequential transformation occurs.”

Settlement Speed Is a Double-Edged Sword

The IMF’s core thesis is that tokenization doesn’t just make existing finance faster, but represents a shift in how trust, settlement, and risk management work. In TradFi, trust is embedded in regulated intermediaries and time-delayed processes (end-of-day settlement, batch reconciliation). Those frictions, the report notes, actually serve a purpose: they give regulators and institutions time to intervene before a crisis cascades.

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Tokenization, which the note defines broadly as “the representation of financial assets and liabilities on programmable digital ledgers,” collapses those frictions, bringing what is generally referred to as the primary benefits of blockchain: near instant settlement, 24/7 liquidity, etc. But, the report notes, that this reduction of barriers introduces new challenges and risks.

“Liquidity demands materialize instantaneously,” the note warns, creating conditions where a smart contract bug or oracle failure could trigger a chain reaction before anyone can respond. The IMF argues:

“When trading, settlement, custody, and compliance are embedded in code, supervision must extend beyond market participants to the design, governance, and resilience of market infrastructures themselves. Failures can
originate in smart contracts, data feeds, or consensus mechanisms, rather than firm balance sheets.”

Who Controls the Money?

A major focus of the report is on the quetion of settlement assets. The IMF identifies three competing models: tokenized commercial bank deposits, regulated stablecoins, and what the report refers to as wholesale central bank digital currencies (wCBDCs), with each carrying different risk profiles.

Cross-Border Gaps and the Fragmentation Risk

The report highlights that a major concern around the tokenization of RWAs in regulated financial markets is jurisdictional: tokenized transactions execute across borders at machine speed, while resolution and crisis management frameworks are still built around nationally domiciled institutions.

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“Tokenization challenges crisis management and resolution frameworks that are built around nationally domiciled institutions, territorially bounded infrastructures, and jurisdiction-specific legal authority.“

In its research note, the IMF calls for international coordination and legal frameworks that can govern code itself, not just the institutions that deploy it.

“The key levers of control may lie in governance keys, consensus mechanisms, or smart contract logic operating across borders,” the note reads — a setup where no single regulator has a clear handle.

The report lands as the value of tokenized RWAs continue to surge, driven in part by tokenized funds from TradFi giants like BlackRock, Franklin Templeton, and Janus Henderson.

In 2025, tokenized RWA value tripled over the course of the year as a wave of financial institutions began tokenizing U.S. treasuries, private credit, and other RWAs.

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Industry forecasts project the sector could hit $100 billion by end of 2026, with more than half of the world’s 20 largest asset managers expected to have launched RWA tokens by year-end.

Meanwhile, stablecoins have already begun functioning as mainstream financial infrastructure, with the GENIUS Act providing U.S. regulatory clarity in mid-2025.

This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.

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Solo Bitcoin Miner Wins $210K Block Reward

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Bitcoin Price, Bitcoin Mining

A solo Bitcoin miner secured a roughly $210,000 block reward on Thursday, proving that the so-called “mining lottery” is still paying out even if industrial operators dominate the network.

The miner, connected to CKPool’s solo service, found block 943,411 and earned 3.139 BTC in subsidy and transaction fees, according to data from block explorer mempool.space.

Solo mining remains rare. Statistics compiled by Bennet’s tracker show that solo mining pools have found just 20 Bitcoin (BTC) blocks over the last 12 months, paying out a total of 62.96 BTC, roughly one win every 18.7 days on average. The longest “drought” between blocks was 58 days, and the previous solo win came on Feb. 28.

The win comes as Bitcoin mining grows increasingly competitive. Network difficulty, the measure of how hard it is to find a block, recently recorded its steepest adjustment since February, falling about 7.7% before rebounding 3.87% in the past 24 hours, reflecting weaker hashrate and briefly improving miners’ odds.

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Bitcoin difficulty relief is fleeting

Even so, current difficulty levels remain near historic highs, meaning the probability of any single solo miner discovering a block is still vanishingly small.

Related: Solo Bitcoin miner bags over $200K block reward using rented hashrate

Public trackers like CoinWarz show Bitcoin’s difficulty has climbed orders of magnitude over the past decade, with only brief downward adjustments when miners switch off unprofitable rigs or redirect machines to other workloads such as artificial intelligence.

Bitcoin Price, Bitcoin Mining
Bitcoin difficulty over time. Source: CoinWarz

As difficulty grinds higher and input costs rise, the economics of mining increasingly favor large, well-capitalized operators over hobbyists.

Major listed Bitcoin miners are responding by reshaping their balance sheets and fleet strategies rather than betting on luck. Riot Platforms sold 3,778 BTC during the first quarter of 2026, according to a Thursday release, adding to a number of crypto miners and firms that have sold Bitcoin recently, including MARA Holdings, Genius Group and Nakamoto Holdings.

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Against that institutional backdrop, the CKPool win stands out as a reminder that individuals can still, on rare occasions, beat the odds.

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