Binance net withdrawals hit $3.6B last week – Report
Binance recorded net withdrawals of more over $3.6 billion between December 7 and December 13, according to a report by the cryptocurrency analytics firm Nansen, as reported by Cointelegraph.
Furthermore, according to Cointelegraph, Binance has seen gross withdrawals of roughly $8.8 billion and gross inflows of about $5.1 billion.
Moreover, although Binance experienced daily net inflows of more than $2 billion in Ethereum ERC-20 tokens in November, this trend changed to outflows of more than $1 billion from December 12–13.
An important market maker’s exit from the exchange, according to Nansen technician Andrew Thurman, may have contributed to the reduction in liquidity.
Thurman’s study indicates that between December 11 and 12, Wintermute withdrew over $300 million, and between December 12 and 13, Jump Finance redeemed over $30 million in BUSD.
Despite this upbeat outlook, insufficient liquidity can lead to wider bid-ask spreads and higher slippage, both of which can be harmful to customers, according to Binance’s own instructional materials, Cointelegraph added.
(Based on research from the Cointelegraph)
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