The Binance exchange recorded $15.7 billion in net asset inflows during the month of August. This is a record according to Binance Research. In fact, the exchange platform attracted more than 75% of the positive flows recorded by the main centralized exchanges. This development is consistent with a monthly increase of more than 20% in bitcoin. However, it does not reflect that $15.7 billion was automatically used to acquire BTC. Deposits take into account various cryptos and respond to different strategies.
In brief
- Binance captures $15.7 billion in net inflows in August.
- The exchange concentrates more than 75% of positive flows in the sector.
- These entries do not necessarily correspond to purchases of bitcoin.
- BTC reserves on Binance reach their highest level of the year.
- Stablecoin and bitcoin deposits send different signals to the market.
Binance concentrates more than 75% of net inflows
While CryptoQuant had detected a record influx of bitcoins to exchanges, DefiLlama statistics specified nearly $15.65 billion in net inflows to Binance over a month. For comparison, Bybit and OKX were listed at around $1.8 billion and $1.6 billion, respectively.
Thus, Binance attracted most of the capital transferred to centralized exchanges during the market rebound. Its inflows were nearly 8.4 times higher than its closest competitor at the time of the report by Binance Research.
THE main data justify this concentration of liquidity:
- Binance received nearly $15.7 billion in net assets in August;
- The exchange concentrated more than 75% of the positive entries in the sector;
- Its flows exceeded those of the second exchange by approximately 8.4 times;
- Bitcoin gained more than 20% and temporarily crossed $80,000.
Binance Research highlighted:
The smaller players, conversely, recorded more contrasted and fragmented flows.
Many exchanges actually reported limited inflows or even net outflows as funds focused on the three major players.
The reserves tracked by DefiLlama on Binance are around $172.9 billion. Thus, monthly inflows therefore constitute approximately 9% of this value. This comparison explains the scale of the movement, even if the indicators relating to on-chain analysis only cover the addresses identified by the providers.
The 15.7 billion does not correspond to a purchase volume
Net inflows measure the difference between assets transferred to Binance and those withdrawn. It is important not to confuse them with the trading volume, the income of the exchange platform or the acquisitions made by its users.
There DefiLlama method also contributes to neutralizing the immediate effect of price fluctuations. From then on, the service determines the difference in quantity for each asset every day, then multiplies it by its price. An increase in bitcoin without new deposits is therefore not enough to artificially create 15.7 billion entries.
However, many users have been prompted by the crypto market rally to move their assets to Binance. Some capital is used to acquire cryptos in cash. Others are used as collateral on derivative products, delegated to a custody structure or placed in yield products.
A significant portion of flows also come from other exchange platforms or personal wallets. The figure therefore determines a movement of liquidity towards Binance, but not necessarily a corresponding arrival on the entire crypto market.
The rise in bitcoin reserves has two readings
BTC reserves held on Binance reach nearly 687,000 units at the end of August. This is their highest level of the year, according to CryptoQuant. They had fallen back to around 617,000 BTC at the end of April.
This development strengthens the liquidity available on the exchange platform. It can also mean that certain owners are preparing disposals, hedging or taking profits. Bitcoins transferred to an exchange can indeed become easier to sell quickly.
A different reading is offered by stablecoins. Binance received more than $470 million in USDC on August 24, its highest daily level in around six months. This capital represents a reserve dedicated to future acquisitions, without guaranteeing that they will be directly deployed.
The August flows therefore reinforce Binance’s dominance, but their impact on the price of bitcoin may depend on their composition. An increase in stablecoin deposits combined with spot acquisitions could support the market. On the contrary, a further increase in BTC reserves would consolidate the selling pressure near $80,000.
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