Huge Inflows to Coinbase
According to on-chain data from CryptoQuant, Coinbase has seen a significant increase in its reserve, gaining 12,000 Bitcoin (BTC) while Binance’s reserve has decreased by 5,000 BTC. This decrease in Bitcoin reserves on Binance is believed to be due to retail outflows.
No Mass Exodus of Funds
Leading up to the legal enforcement action against Binance, there were no signs of a mass exodus of funds. In the past, Binance has experienced higher volumes of outflow and negative netflow during similar situations.
Binance Faces Significant Outflows
Within 24 hours, Binance recorded outflows totaling $2.2 billion as retail investors withdrew their funds from the exchange. These funds appear to be moving towards Coinbase.
Coinbase Stands the Test of Time
Greta Yuan, Head of Research at VDX, believes that the market is nervous about the enforcement action against Binance and sees Coinbase as a more reliable option compared to Binance.
Binance’s US Sojourn Ends
The US Department of Justice brought an enforcement action against Binance, accusing the exchange of various violations. As part of the settlement, Binance had to pay $4.3 billion and close its operations in the US.
Hot Take: Coinbase Gains Prominence Amidst Binance’s Troubles
Recent on-chain data suggests that Coinbase is benefiting from the troubles faced by Binance. With significant inflows into Coinbase and outflows from Binance, it seems that investors are turning to Coinbase as a more stable and trusted option. The enforcement action against Binance by the US Department of Justice has shaken the crypto market, and Coinbase appears to be standing strong amidst the turmoil. As Binance closes its operations in the US, Coinbase is poised to gain even more prominence in the crypto exchange space.
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