Summary
- Binance saw large outflows over the past week, signaling a contraction in liquidity on the exchange.
- Tether (USDT), USDC, Bitcoin (BTC) and Ethereum (ETH) were reported to have posted simultaneous net outflows totaling billions of dollars.
- With cash-like assets and cryptoassets leaving together, buying capacity may shrink, and future price moves could be influenced more by external inflows.
A sharp bout of outflows from Binance over the past week has prompted concerns that liquidity on the exchange is thinning.
On-chain analytics account CryptoOnchain said on X (formerly Twitter) that “over the past seven days, stablecoins and major cryptoassets (cryptocurrencies) have simultaneously left Binance in large size.” According to the figures disclosed, Ethereum-network-based Tether (USDT) recorded net outflows of about $2.26 billion, while USDC saw roughly $1.24 billion in net outflows.
Outflows were also seen in cryptoassets. Over the same period, Bitcoin (BTC) logged net withdrawals of about $2.14 billion, and Ethereum (ETH) about $1.35 billion.
CryptoOnchain explained that “cash-like assets and cryptoassets are leaving the exchange at the same time,” adding that “selling pressure may ease, but so does the exchange’s capacity to absorb buying.”
It added that “this kind of liquidity contraction often appears ahead of a phase of heightened volatility,” and that “going forward, price action could be driven more by external inflows than by internal supply-demand dynamics within Binance.”
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
