The world’s largest crypto exchange, Binance, experienced significant outflows on Monday, with more than $700 million departing from the Ethereum network alone. This news comes shortly after Binance was sued by the US Securities and Exchange Commission (SEC). On-chain analysis platform Nansen shared the information on Twitter, noting that net flows continue to be negative even within the past hour.
Nansen’s data reveals that a 24-hour net outflow of $778.6 million occurred on the Ethereum network, which includes ETH and ERC-20 tokens & stablecoins. In comparison, Binance.US, the US-based branch, had only $13 million net outflows on Ethereum over the same period.
The analysis also looked at Bitcoin outflows, which amounted to 13,484 BTC, or approximately $347 million, over the past 24 hours, according to Coinglass data. Binance now holds a remaining BTC balance of 545,491, making it the highest among all crypto exchanges.
Adding together the Bitcoin and Ethereum network outflows, more than $1 billion worth of crypto have left Binance within merely a day.
Despite the staggering figures, several on-chain analysts claim that these outflows pose no serious long-term problem for the exchange. Popular Bitcoin on-chain analyst Will Clemente, co-founder of crypto researcher Reflexivity Research, stated that material outflows of Bitcoin from Binance have yet to be seen, with only 10,000 BTC subtracted from their balance.
Ki Young Ju, CEO of on-chain analytics platform CryptoQuant.com, shared data that highlights the insignificance of these outflows when observed over a longer period.
In response to the SEC lawsuit, Binance reassured users that all customer funds across Binance and affiliate platforms, including Binance.US, remain safe and secure. The platform is prepared to “vigorously defend against any allegations to the contrary,” according to a statement issued by the company.
The primary conflict in this situation is whether the recent outflows will significantly impact Binance, especially given the SEC’s involvement. Some experts claim that the outflows do not pose a severe long-term issue, while others see the numbers as a concerning indication for the future of the exchange. As the situation unfolds, it remains critical for users to stay informed and act accordingly to secure their investments.
Source: Cryptonews
