Data from CryptoQuant indicates that the significant withdrawals witnessed in the wake of the Binance lawsuit represent only a fraction of the exchange’s total reserves, showcasing the relatively minor impact on its overall holdings.
Following the Securities and Exchange Commission’s (SEC) lawsuit against Binance and its founder Changpeng “CZ” Zhao for purported violations of federal securities laws, the cryptocurrency markets displayed persistent turbulence on Tuesday.
According to data from Nansen.ai, outflows from Binance across various protocols reached an astounding $719 million within a span of 24 hours.
Source: (Nansen.ai)
In the midst of U.S. trading hours, net outflows surged to $230 million subsequent to the SEC’s announcement of a lawsuit against Binance.
Despite the notable and ongoing net outflow, Nansen data reveals that Binance maintains a robust stablecoin balance. The exchange currently holds slightly over $8 billion in stablecoins, with a seven-day outflow of $519 million, equivalent to approximately 6% of its holdings. Comparatively, OKX, the exchange with the second-largest holdings, holds a balance of $4 billion.
In a Twitter thread, CryptoQuant, a crypto analytics firm based in Seoul, emphasized that the withdrawal patterns observed align with historical norms, indicating that the current situation is not unprecedented.
Source: (Nansen.ai)
SAND and MANA Tokens Lead Market Declines
The SEC complaint also included allegations that several other tokens, such as Binance’s BNB, Solana (SOL), Cardano (ADA), Polygon (MATIC), Coti (COTI), Algorand (ALGO), Filecoin (FIL), Cosmos (ATOM), Sandbox (SAND), Axie Infinity (AXS), and Decentraland (MANA), are considered securities. Throughout the Asia trading day, a majority of these tokens experienced persistent declines.
The decline in the metaverse market was primarily led by major tokens SAND and MANA, with SAND dropping by 13% to $0.52 and MANA experiencing an 11.6% decline to $0.45. Additionally, Binance’s BNB saw an 8% decrease, bringing its price down to $276.48.
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CoinGlass reported that during the Asia trading day, approximately $26 million worth of positions were liquidated, out of which $16.8 million were long positions. This adds to the total liquidations within a 24-hour period, reaching $296.5 million, with $271 million corresponding to long positions.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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