The largest cryptocurrency exchange – Binance – experienced an increase in the withdrawal of funds shortly after its chief executive, CZ, pleaded guilty to criminal charges. Although the mass exodus of digital assets from Binance has somewhat diminished, outflows persist.
The latest data indicates a transfer of funds between Binance and Coinbase Pro.
CZ pleaded guilty to charges related to money laundering violations earlier this week with the US Justice Department. The subsequent turmoil in the market triggered a massive exodus of Bitcoins from Binance which has now slowed down.
Bitcoin Flows from Binance to Coinbase Pro
According to CryptoQuant, Coinbase’s reserves have increased by approximately 12,000 BTC, while Binance’s have decreased by 5,000 BTC following the fact. The anticipated approval of a spot Bitcoin ETF is crucial, and sidelining “the big” Binance is vital for emerging entrants in this market, the analysis highlighted.
It is important to note that Coinbase is currently the leading exchange in the United States in terms of regulation and lobbying. Moreover, its volume is primarily made up of institutional players. to that extent, CryptoQuant stated,
“Understanding what the institutional players are doing is essential because the flow that is entering and is about to enter this market comes from these entities.”
Despite this, Binance Spot’s trading volume in the last 24 hours remains substantially higher than Coinbase, approximately 6 times more, maintaining its leadership position in the global crypto market.
Uptick in Total Holdings Value on Binance
The slowdown in outflows from Binance was backed by Nansen’s analysis as well. The blockchain intelligence platform the crypto exchange witnessed a $17 million negative net flow of Ether, over the past 24 hours.
Here's our latest update on @binance, 12 hours after our previous one
At the time of writing, withdrawals are continuing, and we're not seeing a mass exodus of funds
Over the past hour on Ethereum, Binance has a $17M negative netfow (more leaving the exchange than what's… pic.twitter.com/yQPtMl5ue8
— Nansen 🧭 (@nansen_ai) November 22, 2023
However, the total holdings value has increased over the past 12 hours from $64.6 billion to $65.2 billion. This takes into account outflows and changes in prices during the same period.
Bitcoin holdings value has declined by $76 million on Binance, while USDT holdings value has fallen by a whopping $246 million. Other stablecoins such as USDC, and BUSD holdings have also plunged by $39 million and $11 million respectively.
TUSD and XRP holdings value, on the other hand, remained steady. Additionally, Ether’s (ETH) holdings value has increased by $196 million over the past 12 hours. The holdings value of prominent altcoins such as Solana (SOL), Chainlink (LINK), Shiba Inu (SHIB) Polygon (MATIC), have also increased by $34 million, $27 million, $12 million, and $14 million respectively.
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