According to the reports published by Glassnode, the leading analytics firm, Stablecoins worth over 3 billion dollars have been withdrawn from Binance in the last 30 days. The current volume of stablecoins sitting on different exchanges is around 38 billion USD. Many people consider it a result of the FTX fallout.
More about the Glassnode report
Glassnode reports say that the leading crypto exchange in the world, Binance, has witnessed the withdrawal of billions of dollars worth of stablecoins in combined outflows of many coins such as Tether(USDT), USD Coin(USDC), Binance (BUSD), DAI(DAI) and many more.
The chart shows that the exchange started to accumulate stablecoins at an increasing rate at the beginning of 2021. The growth has been more or less stable since then, except it recorded a downfall during late 2021 and 2022.
We can see that the Binance net outflows of the dollar-pegged cryptocurrency assets this month appear to be the highest rate of stablecoin withdrawals in the last 3 three years. It is not a good sign for the crypto industry.
It indicates that the traders and investors have been taking off their crypto assets from the digital crypto exchange following the high-profile collapse of FTX amid fears that the centralised entities operating in the space could face solvency issues which would not be good at all.
Glassnode says the condition will get worse
Looking at BTC, Glassnode said that Binance saw its largest Bitcoin net outflow on December 13th this year. The firm stated there is a huge chance that we will see greater volatility in Binance exchange balances through the month of December.
They also added that if we look at bitcoin inflow and outflows, there had been significant withdrawals of late. On 13th Dec, Binance recorded 57,300 BTC in outflows which is the largest in the history of the exchange. The analytics firm says that ETH worth more than 500 million USD has been taken off of the leading crypto exchange on the same day.
Despite ETH being more stable than BTC, there was a very large one-day outflow of 456,700 ETH on 13th December. This indicates that the entire crypto industry has shifted towards self-custody post-FTX, which every trader and investor should keep in mind.
What are your thoughts on the current situation of Binance? Will there be more withdrawals and higher outflows of crypto assets through the month of December? Let us know in the comments below. And, if you found our content informative, share it with your family and friends.