Binance On Chain Story
Data from Nansen showed that over the last 7 days Binance had some fairly significant outflows which was a worrying sign. They had $8.7B worth of outflows and only $5.1B in...meaning net outflows of $3.6B. For comparison, Coinbase had just under $1B in net outflows. Looking at Santiment's on-chain data there were around 54k Bitcoin moved off Binance in the last 24 hours. That's just under $1B worth of Bitcoin moving off the exchange ($966,600,000).
CZ tweeted that things seemed to have stabilized and that these withdrawals were not as high as some on days during the LUNA or FTX crashes. He went on to say he thinks it's a good idea to "stress test withdrawals". So we had a look at the last 24 hours' worth of on-chain data and it did seem that they had stabilized. They were now showing that there was more volume coming into the exchange than going out. $6.5B in over the last day and $6.1B out.
For context when FTX got into trouble they scrambled to process requests for withdrawals, which amounted to an estimated $6 billion over three days.
While Binance is currently seeing a high volume of withdrawals, the exchange still holds roughly $59 billion in assets at the time of writing, most of which are in Binance’s stablecoin BUSD, the stablecoin Tether, Bitcoin, BNB, and Ethereum. One thing to note here is that the BNB token, Binance's own cryptocurrency that powers its Binance Smart Chain, only makes up 10% of its reserves. Seeing as it has utility across the BSC and that it doesn't look like it's overly reliant on these assets it would seem to paint a very different picture than the one we saw at FTX with their FTT token.
CZ held a Twitter AMA and went on to say: CZ: If people want to withdraw their funds from Binance they can. It's their freedom. When they want to trade, they will deposit back. We hold crypto reserves and cash reserves one-to-one. We hold user asset reserves one-to-one. There's no amount of withdrawals that will put us under pressure.
From what we can see right now, it would seem that this is not a repeat of FTX and the exchange is in a good place. However we all know how quickly things can change so you know what to do if you want to be 100% safe, take ownership of your keys.
Strong XRP Accumulation
Over the past week, we have seen strong XRP accumulation. Wallets holding between 1,000 - 100,000 XRP increased their holdings by over 10% as did those who had between 100,000 and 10,000,000 XRP. Combined this was a 1.7B increase in XRP by existing holders. It's currently trading at 31p so this equates to just under $650m in XRP being bought by these holders in the last 7 days.
Ledger Defi
Ledger is integrating a new Defi tracker which connects to over 1,000 Defi protocols across ten blockchains. It's in partnership with Merlin, a decentralized finance (Defi) portfolio tracker. Users will have access to a range of performance metrics, P&L reports, gas spent, and calculated yields.