Binance’s Q1 numbers reveal this about the future of the exchange. Assessing…
Binance lost a sizable chunk of the global market share in the first quarter of 2023, as regulatory bodies tightened their chokehold around the world’s largest cryptocurrency exchange.
As per a report by crypto market data provider Kaiko, the crypto behemoth lost 16% share of global trading volume after the U.S. Commodity Futures Trading Commission (CFTC) accused the organization of violating certain compliance rules to expand its operations.
The lawsuit-induced FUD thus, resulted in a radical shake-up of its exchange reserves with users withdrawing funds for self-custody.
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As per a report by on-chain analytics firm Glassnode, recent stablecoin outflows outpaced inflows. This indicated that a larger number of stablecoins were withdrawn from the trading platform as compared to the overall deposits.
<p lang=«en» dir=«ltr» xml:lang=«en»>With Binance firmly in the cross-hairs of US regulators, we investigate how the market has responded by assessing the netflow of coins through exchanges.We also evaluate the supply dynamics of Bitcoin, to gauge the current state of holder confidence.https://t.co/JgxyrXIvYN
— glassnode (@glassnode) April 3, 2023
The daily net flow of stablecoins flowing through Binance was plotted on a chart as shown below. Furthermore, a 14-day EMA was also used to offset the impact of daily flows.
Recently, the net outflow reached -$295 million/day, which was the largest net outflow in the history of the cryptocurrency exchange. According to the graph, the indicator was already on witnessing a downtrend and in a negative area over the past few weeks.
Source: Glassnode
As per Glassnode, the primary reason behind the record outflows was the drastic
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