• Binance has seen a record $295 million per day outflow of stablecoins, according to a Glassnode report.
• CFTC’s legal action against Binance has sent shockwaves through the crypto market and raised questions about the security and stability of Binance.
• Bitcoin (BTC) and Ethereum (ETH) remain steady amidst stablecoin outflows on Binance.
Binance Sees Record Outflow of Stablecoins
Binance has recently been thrust into the limelight due to a significant decrease in USD value and stablecoin balances. A Glassnode report confirmed a record net outflow volume of stablecoins from Binance, reaching an astonishing $295 million per day. This level of outflow is unprecedented on the network.
CFTC’s Legal Action Against Binance
The Commodity Futures Trading Commission’s (CFTC) lawsuit against Binance has sparked speculation around its potential impact on the broader cryptocurrency landscape and caused investors to question the security and stability of the exchange. Although this legal action primarily affected those who hold stablecoins, there have been no significant outflows recorded for Bitcoin (BTC) and Ethereum (ETH).
Glassnode Report
Glassnode’s net flow volume estimates the number of crypto assets leaving or entering an exchange by taking into account a positive value when assets are transferred to it or negative when assets are withdrawn from it. According to this metric, investors have been withdrawing $295 million worth of stablecoins from Binance every day which is reflected in regular negative spikes in their data chart.
What Does This Mean?
The CFTC lawsuit against Binance is likely to cause concern among crypto investors over security issues within exchanges. It appears that these worries have mainly impacted holders of stablecoins with large amounts being withdrawn from Binance daily, while other forms of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) remain relatively unaffected thus far.
Conclusion
The CFTC’s legal action against Binance has led to speculation about its potential impact on the broader cryptocurrency landscape as well as investor concerns over its security issues. The resulting surge in withdrawals from the exchange is unprecedented with large numbers of stablecoins being pulled out every day while Bitcoin (BTC) and Ethereum (ETH) remain steady amidst this trend.