Binance, the top global digital asset exchange, is showing strength and progress after resolving issues with US regulators. The settlement, addressing concerns about money laundering and sanctions evasion, represents a significant turning point for Binance.
Since the resolution on November 21, Binance has witnessed a substantial increase in net inflows, totaling around $4.6 billion.
Binance’s Strong Rebound: January 2023 and Beyond
In a noteworthy update from Satoshi Club on X, recent data sheds light on Binance’s remarkable resilience and recovery. January 2023 emerged as a particularly prosperous month, witnessing impressive net inflows totaling $3.5 billion. This figure stands out as the highest monthly inflow since November 2022, signaling a substantial rebound from the challenges faced by the exchange at the end of the previous year.
đź“Š Despite recent legal challenges and leadership changes, @binance has seen net inflows of $4.6 billion since its November settlement with US agencies.
In January alone, it attracted $3.5 billion, marking its strongest month since November 2022. pic.twitter.com/hMZZB3kK3U
— Satoshi Club (@esatoshiclub) January 18, 2024
These challenges, including significant fines imposed by a US court on Binance and its CEO, Changpeng Zhao (CZ), were related to alleged money laundering operations flagged by the US Commodity Futures Trading Commission (CFTC).
To gauge the extent of Binance’s recovery from the tumultuous period last year, consider this: After the departure of former CEO Changpeng Zhao and the exchange agreeing to a substantial $4 billion fine with US regulators, there was a notable outflow of over $1 billion in a single day.
Following this, weekly inflows struggled to surpass $800 million, resulting in a net outflow of -$1.63 billion in November, according to data from DeFillama.
Binance Monthly inflow. | Source:Â DeFillama
However, a positive turnaround began in December, with weekly inflows consistently exceeding $1 billion and totaling over $3 billion monthly. This upward trend has persisted into the current month, with inflows nearing $4 billion, marking a robust recovery for the leading crypto exchange.
Binance: Overcoming Challenges and Expanding Horizons
Despite facing obstacles in the past year, Binance has maintained its strong presence in the crypto space. A recent strategic move involves the establishment of Gulf Binance in Thailand, a collaborative effort with Gulf Innova. This expansion aims to serve the Thai market by providing a platform for trading digital assets using local currency pairs.
In tandem with its global initiatives, Binance’s native token, BNB, has displayed notable resilience. After a dip below $230 in November, BNB has steadily ascended and is currently trading above $300. This upward trajectory aligns with Binance’s overall recovery and growth, reflected in BNB’s trading volume surpassing $1 billion.
BNB price is moving sideways on the 1-hour chart. Source: BNB/USDT on TradingView.com
Additionally, Binance remains at the forefront of the crypto exchange market, as indicated by data from Coinmarketcap. Boasting a 24-hour trading volume exceeding $14 billion, Binance surpasses competitors like Coinbase and Kraken, which recorded $2.7 billion and $999 million in trading volume in the past day.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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