While data suggests that crypto asset flows out of centralized exchanges accelerated last week, Binance CEO Changpeng Zhao thinks the situation may not be as bad as it seems.
Leading analytics platforms such as Nansen and DefiLlama have measured increased forex outflows from Binance in the seven days since news of the SEC's lawsuit against the company aired.
According to Nansen, Binance saw $2.36 billion in net outflows over the past seven days, while Binance.US saw $123.7 million in net outflows. DefiLlama reported even bigger numbers, with $3.35 billion outflows from Binance, while Glassnode data showed the exchange's, the balance has fallen by 5.7% or about $1 billion in the past 7 days. However, in a June 10 Twitter post, CZ argued that some exchange outflow data may be skewed because some third-party analysis measures changes in assets under management as "outflows , " which include declines in cryptocurrency prices time.
Instead, CZ claims that the company's outflows in the past 24 hours on June 9 were approximately $392 million, which pales in comparison to the $7 billion in single-day outflows recorded around the time of the FTX crash last November.
CZ went on to explain that during times of volatility, it is perfectly normal for large amounts of money to flow in and out. “Some even only measure outflows, not inflows. On days like today when prices are volatile, many arbitrary traders move large amounts of money between exchanges, often several times more than usual.” According to CoinGecko, since the SEC filed its lawsuit against Binance and Coinbase on June 5-6, the total cryptocurrency market capitalization has fallen by 7%, or more than $80 billion .
On June 9, Cointelegraph reported that decentralized finance trading volumes surged by more than 400% following a double-action lawsuit against centralized exchanges.
