While Binance is going through a trying period in its existence, the situation seems to benefit the crypto exchange’s competitors. Indeed, since the announcement of its recent agreement with the SEC, investors have massively withdrawn their funds from the exchange. Meanwhile, Coinbase is seeing huge inflows, making it the big winner in the Binance saga. Details below.
$2.2 billion in crypto withdrawn from Binance in 24 hours
Historically, most bad legal news related to Binance has caused its crypto reserve to decline and negative net flows. This was the case in December 2022 with the FTX affair and in June 2023, when the SEC filed a complaint against the exchange.
Even today, the news relating to the agreement reached between Binance and the regulator produces a similar effect. At least that’s what it translates on-chain data collected by the CryptoQuant agency.
Indeed, almost 24 hours after the announcement, the Binance crypto exchange recorded massive outflows of around $2.2 billion. Considering the volume of these withdrawals, CryptoQuant Web3.0 analyst Bradley Park says they were likely initiated by retail investors.
Crypto withdrawn from Binance ended up on Coinbase
On-chain data collected by CryptoQuant reveals that Coinbase saw huge crypto inflows when investors made mass withdrawals on Binance.
The funds withdrawn from Binance would therefore have ended up on Coinbase, whose crypto reserve increased by 12,000 BTC. Coinbase is therefore happily riding the waves of the Binance saga. But will it manage to supplant Binance and wrest its position as leader of crypto exchanges?
The yellow and black dragon with 140 million customers dominated the cryptocurrency market for several years. However, its market share has suffered a continued decline this year due to its numerous legal problems.
In addition, individual investors seem to prefer to have their cryptos on Coinbase, which had also recently been the victim of the SEC’s relentlessness. “Coinbase has stood the test of time,” said Greta Yuan, head of research at crypto platform VDX. That said, all the cards are not yet played for Binance. The outcome of the upcoming hearing could restore confidence to investors and allow the crypto giant to regain its form.
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