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- Whale’ moves to stir the waters as substantial Bitcoin inflow trends on Binane, moving more than $300M worth of Bitcoin.
- While Binance saw a huge wave of outflows and regulatory problems, the platform remains the biggest crypto exchange in the game.
More Than $300M Worth of Bitcoin Enters Binance
In the last two days, Binance has witnessed a significant influx of Bitcoin, totaling over $300 million, as noted by Glassnode.
This spike consists of two major inflows: around $200 million on Oct. 11 and close to $120 million the following day, Oct. 12.
Binance’s Bitcoin holdings stand at roughly 682,000 BTC, about 70,000 BTC shy of its peak in May 2023.
Importantly, this number accounts for nearly 3.5% of all Bitcoin stored on exchanges, highlighting the substantial concentration of Bitcoin on Binance and emphasizing its dominant position.
These large deposits are likely the actions of ‘whale’ or big-ticket investors, as most of these transactions are in the bracket of $1M to $10M.
Binance is On a Bad Streak This Year
For the seventh straight month, Binance experienced a decline in its spot market share, influenced by reduced market volatility and ongoing regulatory challenges facing the top cryptocurrency exchange.
Data gathered by CCData reveals that Binance’s share in the spot market reduced to 34.3% in September, down from 38.5% in August and a high of 55.2% in January.
In the derivatives segment, its share dipped to 51.5% from 53.5% in August and 62.6% at the beginning of the year.
In an attempt to revitalize trading activity, Binance recently suspended a no-fee trading promotion.
Furthermore, the exchange is contending with lawsuits from the US Commodity Futures Trading Commission and the Securities and Exchange Commission.
Both bodies claim that Binance failed to register with US regulators and provided illegal securities.
Both Binance and its founder, Changpeng Zhao, and its US branch are contesting these allegations in court.
Despite identifying as a virtual company, Binance did not immediately offer a response when approached for comment.
Jacob Joseph from CCData attributed the decline to suspending the no-fee trading offer and the ongoing regulatory concerns.
“The halt in zero-fee trading for key trading pairs, coupled with regulatory worries, has played a role in this downturn.”
Jacob Joseph from CCData
CCData also highlighted that Binance’s decreased spot trading volume has benefited exchanges like HTX, Bybit, and DigiFinex.
Competitors like OKX, Bybit, and Bitget have seen increased market share in the derivatives domain.
Regulatory Problems in the UK
On Tuesday, the UK’s financial watchdog announced it is preventing the peer-to-peer platform rebuildingsociety.com from endorsing financial promotions for Binance and other crypto companies.
This comes shortly after Binance revealed its collaboration with the platform.
Binance, a crypto exchange not regulated in the UK, mentioned in a recent blog post that it had introduced a new domain for its UK users.
They also stated that rebuildingsociety.com would oversee the approval of its marketing and communication content.
Do you think Binance can overcome its problems and grow even bigger than before?
