According to leading analytics platforms such as Nansen and DefiLlama, there has been an increased outflow of crypto assets from Binance over the past week following news of the Securities and Exchange Commission’s lawsuit against the exchange.
Nansen reported a net outflow of $2.36 billion from Binance in the past seven days, while DefiLlama recorded $3.35 billion in outflows. Glassnode data also showed a decline in Binance’s BTC balance by around $1 billion over the same period.
However, Binance CEO Changpeng Zhao (CZ) argued that the outflow data may be skewed. He explained in a Twitter post that some third-party analytics measure changes in assets under management as “outflow,” including times when crypto prices decline.
CZ stated that the outflow from Binance over the past 24 hours on June 9 was around $392 million, which he considered to be relatively low compared to the $7 billion outflow recorded in November last year during FTX’s collapse.
CZ further noted that large inflows and outflows are normal during times of volatility in the crypto market. He mentioned that some analytics platforms only measure outflows and not inflows, and on days with sharp price movements, arbitrage traders often move significant amounts of funds between exchanges.
Since the SEC’s lawsuits against Binance and Coinbase, the total crypto market capitalization has declined by 7%. However, it’s worth noting that decentralized finance (DeFi) volumes surged over 400% following the lawsuits, as reported by Cointelegraph on June 9.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up