Binance net outflows hit $778M on Ethereum since SEC charges: Nansen

The SEC’s lawsuit against Binance, alleging violations of various securities laws, has had a direct effect on both the cryptocurrency market and the exchange’s financial records.

According to data from the crypto analytics company Nansen, Binance had outflows of more than $778 million on the Ethereum blockchain, with $871 million of inflows being overshadowed by $1.6 billion leaving the exchange.

At the time of writing, as of 9.15am UTC, in the 24 hours since the SEC charges, tokens based on Ethereum have experienced net outflows, with $14.8 million worth of assets being brought in and $50.5 million worth of assets leaving the exchange in the last hour alone.

In the first hour after news of the SEC’s charges was announced, Binance’s reserve assets experienced a net outflow of approximately $1.4 billion, which equates to 2.6% of its total reserve assets of $52.9 billion.

In the last 24 hours, the amount of money that has been transferred out of Binance through all protocols has reached $999 million. Simultaneously, the diminishing trust in Binance has enabled OKX to become a favored trading platform, with an influx of more than $190 million.

In comparison to the Commodity Futures Trading Commission’s legal action against Binance in March, the recent net outflow is quite substantial, but less in magnitude. The same can be said of December 2022 when Binance experienced major outflows following the FTX crash. Moreover, the net outflows are still lower than the exchange’s reserve; the crypto exchange currently has a strong stablecoin balance of over $8 billion.

In addition to Ethereum outflows, Binance has experienced the largest withdrawal of Bitcoin (BTC) since the FTX crash. Over 20,000 BTC have been taken out of the exchange within the last 24 hours.

An analysis conducted on-chain by CryptoQuant showed that the total number of user transactions to take out funds increased after the SEC lawsuit was declared. Nevertheless, these figures still had not reached the levels observed in December 2022, when self-custody started to become more prevalent in the cryptocurrency space.

Market analysts have speculated that the sharp increase in the removal of funds from the crypto exchange indicates a decrease in investors’ faith in centralized exchanges.

The magazine reports that Bitcoin is heading towards fulfilling the promises of achieving ‘Net Zero’.

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