Coinbase is now outnumbered by Binance as the largest Bitcoin reserve holder
According to recent reports, Binance, a crypto giant, has become the largest Bitcoin reserve holder ever. An “exchange reserve” indicates how much Bitcoin is currently stored in wallets at a centralized exchange.
What it Actually Indicates
This metric indicates that investors are depositing their coins on the exchange when it increases in value. A decline in this metric means that holders are withdrawing their BTC from the exchange. Below is a graph showing the changes in Bitcoin reserves over the past few decades.
The graph above shows that the Bitcoin exchange reserves of nearly all the major players have been steadily declining in recent years.
Rise Of A Clear Winner
This rapid downtrend is due to the fall of FTX. Investors around the world have grown increasingly skeptical about centralized exchanges due to the bankruptcy of FTX.
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They have been making large withdrawals to store their coins in wallets that they control. One crypto exchange has made a remarkable development. Contrary to other exchanges, Binance has seen its reserve increase during this time.
Binance noticed a decline in their reserve after the collapse of FTX. However, deposits have been steadily increasing since then. Recent rapid growth in the Bitcoin reserve of Binance has not only compensated for the previous drop, but has also exceeded it.
Coinbase’s treasuries, which held the title of largest exchange in terms BTC reserves, were overtaken by Binance’s, which now have a new all time high.
The price of Bitcoin hovers around $16,000 at the time of writing, a 4% drop from the previous week. Over the past 30 days, the value of the crypto king decreased by 16%.
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