The Reason Behind the Decline in Bitcoin Transaction Volumes on Binance Has Been Revealed
The average weekly volume of transfers on Binance has dropped to 5,200 BTC, marking one of the lowest levels in the current market cycle. Unlike previous cycles, when Bitcoin price growth was accompanied by increased activity among holders with more than 1 BTC, the current trend shows the opposite dynamic. Transactions to the exchange from this category of addresses have almost ceased, according to CryptoQuant analysts.
“Reduced selling pressure from large holders and the rising price of the leading cryptocurrency, which makes it difficult for many investors to purchase even a single whole coin, are negatively affecting transfer dynamics on Binance,” the experts believe.
Additional factors behind the decline in Bitcoin transaction volumes on Binance include the growing number of centralized platforms and alternative services with high liquidity, analysts explained. Investors are gradually reducing their reliance on major platforms such as Binance and contributing to the redistribution of the leading cryptocurrency, CryptoQuant concluded.
Earlier, experts from the Kaiko platform stated that Binance is capable of creating significant legal and structural risks for the entire cryptocurrency market and may negatively impact coin prices.
See also: "American PNC Bank launches Bitcoin trading via Coinbase"
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