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Binance Net Withdrawals Exceeded $3.6 Billion Over The Last 7 Days: Report

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Binance appears to be experiencing a drop in liquidity. A report by crypto analytics firm Nansen, states that Binance had net withdrawals of more than $3.6 billion from Dec 7 to Dec 13.

Binance outflows totaled about $8.8 billion, while total inflows were about $5.1 billion.

Additionally, while Binance saw over $2 billion in daily net inflows of Ethereum ERC-20 tokens in November, this was reflected in over $1 billion in outflows from December 12-13.

Binance ERC-20 token flow and balance. Source: Nansen Analytics

According to Nansen technician Andrew Thurman, the drop in liquidity may be partly caused by the exit of large market makers from the exchange. Thurman’s research suggested that Wintermute Withdraw Over $300 Million Dec. 11-12 and Jump Finance redeemed Over $30 Million in Binance USD (BUSD) Dec 12-13.

Binance is the largest cryptocurrency exchange in the world by volume get stressed On December 12 when a report was released claimed The US Department of Justice is considering charging its executives with financial crimes. The Department of Justice has not issued an official statement on the matter, but Binance has claimed that the report is “false.”

In response to the outflow, Binance CEO Changpeng “CZ” Zhao she has claimed That the event could be beneficial for the exchange, as it will act as a “stress test” that will prove Binance solvent:

Despite this positive attitude, Binance’s educational resources indicate that low liquidity can do this Leadership To widen bid-ask spreads and increase slippage, both of which can be negative for customers.