Coinbase appears to be becoming more well-known as a cryptocurrency exchange, as evidenced by some on-chain data showing an increasing amount of money entering the exchange’s reserve at Binance’s expense.
Massive Coinbase Inflows Spotted On-chain Data: Coinbase’s reserve rose to 12,000 Bitcoin (BTC) at roughly the same time that Binance’s reserve fell by 5,000 BTC, according to data gathered by CryptoQuant. Retail outflows appear to be the cause of the decline in Bitcoin reserves on Binance, according to Bradley Park, a Web3.0 analyst at CryptoQuant.
During the initial twelve hours before the authorities arrived, Nansen verified via the X app that there was no genuine indication of a “mass exodus of funds.”
“Before the SEC sued Binance in June 2023, after insolvency rumors in December 2022, and in the immediate aftermath of FTX, Binance processed higher volumes of outflow and negative netflow,” Nansen said.
This equilibrium was quickly upset when Binance started to see notable withdrawals from its reserve. The digital asset service provider had experienced withdrawals totaling $2.2 billion in a single day. The withdrawal’s size indicated that regular investors were taking their money out of the exchange.
The interesting thing to notice is that these funds are moving from Binance to Coinbase. Greta Yuan, head of research at the digital asset platform VDX, located in Hong Kong, thinks that the market is still extremely uneasy about the enforcement action against Binance. Based on the current circumstances, the analyst stated that “Coinbase has stood the test of time” in contrast to Binance.
Binance’s US Stay Came to an End
Earlier this week, the US Department of Justice (DOJ) filed an enforcement action against Binance, alleging the exchange violated the International Emergency Economic Powers Act, Know-Your-Customer regulations, ran an unlicensed money-transmitting business, and engaged in acts of conspiracy.
Notably, the U.S. agency required the exchange to pay a settlement of $4.3 billion also, it appears that the news has shook the entire cryptocurrency market. CEO of the largest cryptocurrency exchange by market capitalization, Changpeng “CZ” Zhao, founded Binance, promptly resigned from his role after entering a guilty plea to the money laundering charge.
The exchange was forced to shut down operations in the US as part of the punishment it had to pay, ending its stay there. This is a positive development for Coinbase.
