Binance Sees Massive $1.2 Billion Inflow in 24 Hours, Surpassing Rivals
In a significant development for the cryptocurrency market, Binance, the world’s largest cryptocurrency exchange, has recorded a net inflow of $1.2 billion in the past 24 hours, according to DeFiLlama’s CEX Transparency metrics. This figure greatly surpasses the inflows seen by its major competitors like OKX and Bybit.
The substantial capital influx is a clear indication of users’ confidence in Binance and their optimistic outlook on the future of the cryptocurrency market, despite recent volatility, as reported by DeFiLlama.
The surge in inflows also bodes well for Richard Teng, who recently assumed the role of CEO following a multibillion-dollar penalty imposed on the exchange for illicit activities and the departure of its founder, Changpeng Zhao.
Richard Teng remarked, “This marks one of the highest net inflow days of 2024. Despite experiencing significant market downturns in recent hours, this potentially signifies investors’ belief and eagerness to buy in at a lower price point when they perceive it as the right opportunity.”
He further noted, “The current market trends support this observation, with a rebound in the prices of major tokens. Our internal data indicates that yesterday was also one of the busiest trading days in 2024.”
In January, Binance attracted $3.5 billion in investments, just two months after its owner admitted to criminal activities such as money laundering and sanctions evasion. Notably, the exchange managed to pay off the full $4.3 billion fine imposed by the DoJ without liquidating any crypto assets.
However, Teng still faces several challenges ahead. He must establish a global headquarters, appoint a board of directors, and ensure an independent monitor for a three-year period. Additionally, Binance is still lacking complete licenses in key crypto hubs, and its U.S. branch is entangled in a legal battle with the SEC.
The risks associated with operating in local markets without official authorization were highlighted recently when India restricted access to Binance and other offshore platforms by removing their apps from Apple and Google stores. Similar crackdowns were witnessed last year in countries like Australia and Belgium, where Binance operated without the required permits.
In conclusion, the massive inflow of funds into Binance reflects a strong vote of confidence from investors and users, despite the challenges and regulatory hurdles the exchange continues to face. The positive market trends and rebound in token prices further support the notion that Binance remains a key player in the cryptocurrency space, attracting significant attention and investment.