Implosion of biggest cryptocurrency exchange on market could be final blow to crypto, but there’s nothing to worry about
The CEO of on-chain analytical service CryptoQuant dives into the largest exchange’s holdings to find out whether the exchange is solvent, resilient and ready for another big wave of outflows. are here Result,
According to the on-chain analyst, despite the drop in Bitcoin reserves over the last two days, Binance’s holdings increased by 24% since the FTX bank run last month. The outflows wave we have been witnessing on Ethereum since November does not seem to have any significant effect on the exchange’s reserves. On the contrary, the number of ETH on the exchange’s wallets is on the rise.
The same story applies to bitcoin holdings. Digital gold volumes on exchanges are at a comfortable level, which reflects the fact that Binance has not been forced to sell some of its liquid assets in exchange for liquidity.
The same story applies to bitcoin holdings. Digital gold volumes on exchanges are at a comfortable level, which reflects the fact that Binance has not been forced to sell some of its liquid assets in exchange for liquidity.
The value of liquid assets held on an exchange that could be used in an emergency remains approximately $20 billion. With almost $2 billion in withdrawals, Binance should not feel any significant pressure from investors that could impact withdrawal operations or the operational availability of the exchange.
According to the aforementioned facts, Binance does not seem to have any issues with liquidity or funds storing. The exchange will easily take a few more waves similar in size to what we saw two days ago and will most likely have no need to sell its reserves. However, numerous crypto enthusiasts and experts urged users to withdraw their holdings from the trading platform if they are worried about their safety.
