• Binance has seen a record-breaking net outflow of stablecoins.
• A Glassnode report has confirmed a decrease in USD value and stablecoin balances.
• Bitcoin & Ethereum have remained steady amidst the outflows.
Binance’s Record Stablecoin Outflow
Binance has recently faced a large net outflow of stablecoins, according to a recent report by Glassnode. The Commodity Futures Trading Commission’s (CFTC) lawsuit against Binance has sent shockwaves through the crypto market, leading to questions about the security and stability of Binance and speculations about its potential impact on the broader cryptocurrency landscape.
Unprecedented Outflow Volume
Glassnode’s net flow volume estimates the number of crypto assets leaving or entering an exchange. Notably, this metric has been showing regular negative spikes, indicating that $295 million worth of stablecoins are being withdrawn from Binance every day – an unprecedented level of outflow. This suggests that investors are pulling their investments away from Binance in response to the CFTC lawsuit and other recent developments.
Bitcoin & Ethereum Steady
Interestingly, it appears that these inflows have primarily impacted stablecoins rather than other forms of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). According to Glassnode data, there were no significant outflows recorded for these coins while they have also seen an increase in positive inflows on Binance.
CFTC Lawsuit Impacting Investors
The CFTC’s legal action against Binance has had a direct effect on those who hold stablecoins as well as those who are invested in other cryptocurrencies such as Bitcoin and Ethereum. The rise in net outflows indicate that investors are becoming more wary about entrusting their assets to the exchange due to its current legal situation with the CFTC.
The latest figures from Glassnode suggest that investors are increasingly withdrawing their assets from Binance amidst concerns over its security and stability following CFTC’s lawsuit. While BTC and ETH remain relatively unaffected by this development, it appears that those who hold stablecoins have been significantly impacted by this news.