Binance has experienced significant fund outflows over the past week, with a total of approximately $7 billion in stablecoins and mainstream assets leaving the platform. According to CryptoOnchain, USDT (ERC20) saw a net outflow of $2.26 billion, USDC $1.24 billion, BTC $2.14 billion, and ETH $1.35 billion. This simultaneous withdrawal of both 'cash' and 'assets' suggests a contraction in liquidity.
The reduction in liquidity could lead to increased market volatility, as price discovery may increasingly depend on external fund flows rather than internal trading activity on Binance. The outflows indicate a weakening of buying power on the platform, potentially impacting market dynamics in the near term.
Binance Faces $7 Billion Outflow, Signaling Potential Volatility
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