Binance On-Chain Health After DOJ Settlement
Binance has experienced ailing on-chain activities since its $4.3 billion settlement with the US DOJ in November. The exchange's reserves have steadily declined as users continue to withdraw their assets. Binance's bitcoin (BTC) reserves have plummeted to around 500,000 BTC from 634,000 BTC in May. BTC deposit transactions on Binance have also slumped to fresh lows. Binance's bitcoin spot trading volume fell below that of rival exchanges Coinbase and OKX for the first time since June 2020.
Despite the declines, Binance has maintained its dominance with the highest BTC reserves and 30-day cumulative net flows. The exchange has recovered its market share, which has returned to roughly 50%.
The DOJ settlement appears to have had a relatively low impact on Binance's overall on-chain health. The exchange remains the dominant player in the crypto market with the highest BTC reserves and trading volume.
Highlights:
- Binance's reserves have declined by 20% since their all-time high, marking the exchange's largest fall in five years.
- Bitcoin deposit transactions on Binance have slumped to fresh lows.
- Binance's bitcoin spot trading volume fell below that of rival exchanges Coinbase and OKX for the first time since June 2020.
- Binance founder Changpeng Zhao (CZ) stepped down as CEO in November as part of a $4.3 billion settlement with the US DOJ.
- Despite the declines and mass exodus of assets, Binance has maintained its dominance with the highest BTC reserves and 30-day cumulative net flows.