The cryptocurrency exchange market looks set to undergo a transformational shift in 2024, largely driven by a significant rise in institutional activity.
according to Visions Major exchanges with which CryptoQuant participates on the QuickTake platform are seeing unprecedented growth in Bitcoin and USDT deposits.
This trend highlights the growing confidence of institutional investors in digital assets, marking a departure from the traditionally retail-dominated trading space.
Institutional interest in cryptocurrencies rises
Key metrics reveal that average Bitcoin deposits across exchanges rose from 0.36 BTC in 2023 to 1.65 BTC this year. Likewise, USDT deposits rose significantly from $19.6k to $230k, reflecting the growing participation of professional and corporate investors.
According to CryptoQuant, these large inflows indicate growing interest in cryptocurrencies and broader institutional embrace as a viable financial instrument.
The on-chain data provision platform also revealed that Binance has emerged as the leader in attracting institutional funds among cryptocurrency exchanges.
CryptoQuant data highlights an increase of 2.77 BTC in average daily BTC deposits at Binance, far outpacing competitors like Kraken and Coinbase, which reported increases of 0.56 BTC and 0.41 BTC, respectively.
This is in line with the Binance CEO’s previous statement regarding a 40% expansion in the platform’s institutional business. in interview In an interview with CNBC, Binance CEO Richard Ting noted:
So we alone are seeing a huge rise in the number of institutional and corporate investors. We’ve seen a 40% increase in onboarding in this category over the course of this year alone.
Binance’s performance is further boosted by its activity in USDT deposits. The exchange and Bitfinex posted significant gains in this category, with average daily USDT deposits for Binance rising by $94,000 and Bitfinex’s by $566,000, according to data shared by CryptoQuant.
Notably, Binance’s total USDT reserves have reached an all-time high of $23 billion (ERC-20), underscoring its dominance of institutional liquidity. On November 3, 2024, Binance set a record with an average daily Bitcoin deposit of 6.85 BTC (about $465,000), representing a 14-fold dollar growth from previous levels.
Is there more room for institutional boom?
Despite this significant increase in institutional interest in the cryptocurrency market in general, it may just be the beginning, especially since up to 50% of traditional major companies have not ventured into the cryptocurrency market.
Highlighting this, Binance CEO Teng told CNBC:
Institutional allocation to cryptocurrencies is just the tip of the iceberg. It’s just the beginning, because many of them are still doing their due diligence.
It is worth noting that the implications of the continued rise in institutional interest in digital currency are very positive. Continuing this trend means more inflow and liquidity into the market, which could boost cryptocurrency prices, given… That many important purchases It will be made.
Featured image created with DALL-E, chart from TradingView