{"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 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 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":"Exchange Outflow Data May Be Misconstrued\u2014CZ\u00a0<\/b><\/h2>\n
DEXs Dominate CEXs in Trading Volume<\/b><\/h2>\n