{"id":406824,"date":"2023-06-12T14:30:47","date_gmt":"2023-06-12T14:30:47","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=406824"},"modified":"2023-06-12T15:00:11","modified_gmt":"2023-06-12T15:00:11","slug":"binance-ceo-reacts-to-massive-exchange-flow-data","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/binance-ceo-reacts-to-massive-exchange-flow-data","title":{"rendered":"Binance CEO Reacts To Massive Exchange Flow Data"},"content":{"rendered":"

Over the past few days, several platforms have reported massive exchange outflows from Binance following <\/span>the SEC lawsuit<\/span><\/a>.\u00a0<\/span>Also, data suggests that asset outflow from centralized exchanges has accelerated over the same period.<\/span><\/p>\n

However, while these data suggest investors are moving funds due to the ongoing regulatory enforcement, Binance CEO Changpeng Zhao <\/span>argues<\/span><\/a> otherwise.\u00a0<\/span>The CEO said these platforms might have misinterpreted the data since things aren’t always as they seem.<\/span><\/p>\n

Exchange Outflow Data May Be Misconstrued\u2014CZ\u00a0<\/b><\/h2>\n

Most recently, prominent blockchain analytic firms like Nansen and DefiLlama reported increased exchange outflows from Binance amid heated lawsuits.\u00a0<\/span>Nansen<\/span> data showed a net asset outflow of $2.36 billion over the past seven days from Binance and $123.7 million from BinanceUS.<\/span><\/p>\n

Another blockchain analytics platform, DefiLlama, reported a higher figure than Nansen’s. According to <\/span>DefiLlama<\/span><\/a>, Binance has witnessed $3.35 billion in outflow.\u00a0<\/span><\/p>\n

On the other hand, Glassnode <\/span>data<\/span><\/a> shows the crypto exchange\u2019s bitcoin balance has reduced by 5.7%, which is about $1 billion in the last seven days.<\/span>In light of these, Binance CEO CZ tweeted on June 10, disputing that some exchange outflow data may be misleading.\u00a0<\/span><\/p>\n

He explained that some third-party analytics measure change in Assets Under Management (AUM) as outflow. <\/span>According to the CEO, this representation often includes crypto<\/a> price declines, which decrease AUM.\u00a0<\/span><\/p>\n

Therefore CZ claimed that Binance\u2019s outflow was $392 million, a drop in the bucket compared to the $7 billion in 24-hour assets outflow recorded in November 2022 during the FTX fiasco. <\/span>The CEO also attributed the large outflows to fluctuating price movements, noting that large netflows are normal when volatility is high.<\/span><\/p>\n

In <\/span>CZ\u2019s words<\/span><\/a>,<\/span> “Some even only measure outflows, net inflows. On sharp price movement days like today, many arbitrage traders move a lot of funds between exchanges, usually exponentially more than on normal days.”\u00a0<\/span><\/p><\/blockquote>\n

Notably, the SEC lawsuit on two of the largest crypto exchanges severely impacted the crypto<\/a> market. T<\/span>he total market capitalization declined by 7%, more than $80 billion. In addition, several crypto prices nosedived due to bearish market sentiment.\u00a0<\/span><\/p>\n

DEXs Dominate CEXs in Trading Volume<\/b><\/h2>\n

However, the increased outflows on centralized (CEX) platforms appeared beneficial for decentralized exchanges (DEX). The<\/span>\u00a0<\/span>data<\/span><\/a> reveals the trading volume across top decentralized exchanges skyrocketed by 444% while the total value locked (TVL) on DeFi protocols declined below $500 billion.<\/span><\/p>\n

Trading volume on top decentralized exchanges, like Uniswap V3 (Ethereum), Uniswap V3 (Arbitrum), and PancakeSwap V3 (BSC), increased by over $792 million between June 5 and 7.\u00a0<\/span>At press time, CoinMarketCap <\/span>data<\/span><\/a> shows that most DEX trading volumes are still increasing.\u00a0<\/span><\/p>\n

Trading volume on PancakeSwap v3 (BSC) increased by 89.89%, while others saw considerable increases except for Uniswap v3 (Ethereum) and Uniswap v3 (Polygon), with 7.34% and 12.82% decline, respectively.<\/span><\/p>\n

But despite the massive outflows, Binance remains the largest crypto exchange by trading volume, according to CoinMarketCap <\/span>data<\/span><\/a>.<\/span><\/p>\n

\n <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Over the past few days, several platforms have reported massive exchange outflows from Binance following the SEC lawsuit.\u00a0Also, data suggests that asset outflow from centralized […]<\/a><\/div>","protected":false},"author":1916,"featured_media":406826,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[7612,14429],"class_list":["post-406824","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-more-crypto-news","tag-binance","tag-massive-exchange"],"acf":[],"yoast_head":"\nBinance CEO Reacts To Massive Exchange Flow Data - InsideBitcoins.com<\/title>\n<meta name=\"description\" content=\"Binance\u2019s outflow was $392 million, a drop in the bucket compared to the $7 billion in 24-hour as recorded in November 2022 amid FTX fiasco.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/406824\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Binance CEO Reacts To Massive Exchange Flow Data\" \/>\n<meta property=\"og:description\" content=\"Binance\u2019s outflow was $392 million, a drop in the bucket compared to the $7 billion in 24-hour as recorded in November 2022 amid FTX fiasco.\" \/>\n<meta property=\"og:site_name\" content=\"InsideBitcoins.com\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-12T14:30:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-06-12T15:00:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2023\/06\/22aee16e43e33d890ee49cfcebbe3d94.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Asad Gillani\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Asad Gillani\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/406824#article\",\"isPartOf\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/406824\"},\"author\":{\"name\":\"Asad Gillani\",\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/person\/49993983b56f9db439a2d4cffedd001d\"},\"headline\":\"Binance CEO Reacts To Massive Exchange Flow Data\",\"datePublished\":\"2023-06-12T14:30:47+00:00\",\"dateModified\":\"2023-06-12T15:00:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/406824\"},\"wordCount\":471,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/insidebitcoins.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/406824#primaryimage\"},\"thumbnailUrl\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2023\/06\/22aee16e43e33d890ee49cfcebbe3d94.jpg\",\"keywords\":[\"Binance\",\"Massive Exchange\"],\"articleSection\":[\"More Crypto News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/406824#respond\"]}],\"copyrightYear\":\"2023\",\"copyrightHolder\":{\"@id\":\"https:\/\/insidebitcoins.com\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/406824\",\"url\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/406824\",\"name\":\"Binance CEO Reacts To Massive Exchange Flow Data - 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