- Binance, the largest cryptocurrency exchange, experienced an increase in fund withdrawals after its CEO CZ admitted guilt.
- The market turmoil following this led to a significant surge in Bitcoin transfers from Binance, but this surge has now slowed down.
- The values of leading altcoins such as Solana (SOL), Chainlink (LINK), Shiba Inu (SHIB), Polygon (MATIC) also increased by $34 million, $27 million, $12 million, and $14 million, respectively.
Acceleration of Bitcoin and cryptocurrency withdrawals following the crisis at the cryptocurrency exchange Binance: Where are the withdrawn Bitcoins being transferred?
Where Are the Withdrawn Bitcoins from Binance Going?
Binance, the largest cryptocurrency exchange, experienced an increase in fund withdrawals after its CEO CZ admitted guilt. While the mass exodus of digital assets from Binance has somewhat diminished, withdrawals continue. According to the latest data, fund transfers are taking place between Binance and Coinbase Pro.
CZ admitted charges related to money laundering violations with the U.S. Department of Justice earlier this week. The market turmoil that followed led to a significant increase in Bitcoin transfers from Binance, but this surge has now slowed down.
According to CryptoQuant, while Coinbase’s reserves increased by around 12,000 BTC, Binance’s reserves decreased by 5,000 BTC after this event. The approval of an expected spot Bitcoin ETF is crucial, and sidelining the “big” Binance is significant for new entrants in this market, emphasized the analysis.
Coinbase is currently the leading exchange in terms of regulation and lobbying in the United States, with its volume primarily consisting of institutional players. In this regard, CryptoQuant noted:
“Understanding what institutional players are doing is important because the flow entering and preparing to enter this market comes from these assets.”
Nevertheless, in the last 24 hours, the trading volume of Binance Spot has remained significantly higher than Coinbase’s – about 6 times more – maintaining its leading position in the global crypto market.
Increase in Total Asset Value on Binance
The slowdown in withdrawals from Binance is also supported by the analysis from Nansen. The blockchain intelligence platform noted that the exchange saw a negative flow of $17 million in Ether in the last 24 hours. However, the total asset value increased from $64.6 billion to $65.2 billion in the last 12 hours.
While the Bitcoin asset value on Binance decreased by $76 million, the USDT asset value surprisingly dropped by $246 million. The asset values of other stablecoins, USDC and BUSD, decreased by $39 million and $11 million, respectively.
On the other hand, the asset values of TUSD and XRP remained stable. Additionally, the asset value of Ether (ETH) increased by $196 million in the last 12 hours. The asset values of leading altcoins such as Solana (SOL), Chainlink (LINK), Shiba Inu (SHIB), and Polygon (MATIC) also increased by $34 million, $27 million, $12 million, and $14 million, respectively.
