Binance outflow $1B over the last 24 hours

In a tumultuous 24-hour period, Binance outflow surpassing $950 million. This coincided with the decision of founder Changpeng Zhao (CZ) to step down as CEO amid criminal charges in the United States. This pivotal event has sent ripples through the cryptocurrency community, leading to heightened scrutiny and an upsurge in withdrawal activities.

Binance outflow $1 billion over the last 24 hours

The Binance outflow, primarily consisting of Bitcoin and stablecoins, surged following CZ’s announcement of resignation. This information was conveyed by Hochan Chung, head of marketing at CryptoQuant. Although these hourly outflows carry significance, they have not yet posed a substantial threat to Binance’s overall reserves, given the exchange’s substantial holdings.

Despite the increased volume of withdrawals, Binance is assuring its user base that it will continue regular operations. As part of its settlement, the company emphasizes its decision for a “complete exit” from the U.S. Binance underscores that the current heightened withdrawal volumes do not signify financial distress for the company.

On-chain data from CryptoQuant suggests that the increased withdrawals align with typical weekly patterns. According to the Dune Analytics dashboard, more than $2.37 billion in various tokens exited the exchange during this period. Additionally, there were approximately $1.78 billion in token deposits during the same timeframe.

Significantly, addresses linked to institutional entities played a notable role in these movements. An address associated with the institutional trading desk FalconX withdrew $83 million, while another linked to the market maker Wintermute Trading led deposits with $190 million.

Binance’s native token, BNB, featured prominently in both deposits and withdrawals, emphasizing its significance within the exchange ecosystem. The processing of these transactions helps alleviate concerns about Binance’s financial stability, distinguishing the current situation from last year’s FTX crisis.

As of the latest available information, BNB was trading at $236.82 with a 9% daily drop.

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Binance outflow – Binance to Uphold Global Dominance Post-U.S. Settlement

Despite encountering legal challenges and a substantial $4.3 billion fine, analysts at Bernstein argue that Binance continues to hold its dominant position on the global stage. With $67 billion in customer funds under custody, the company is believed to have the capacity to settle the significant fine while maintaining robust operations. Analysts, led by Gautam Chhugani, expressed this perspective.

“Binance’s complete exit from the U.S would mean continued dominance of onshore and incumbent exchanges in the U.S. In our view, this is the final straw before the establishment feels comfortable to approve a regulated bitcoin ETF.”