On-chain data shows that the average Bitcoin inflow to Binance has seen rapid growth during 2024, meaning whales have been using the exchange more.
The average Bitcoin exchange flow to Binance has increased over the past year
As Maartunn, a CryptoQuant community analyst, explained in the new Quicktake mailBinance has seen a shift in its traffic over the past year. The on-chain metric of interest here is “exchange flow,” which tracks transactions from self-custodial wallets to exchange-linked addresses.
The traditional form of this indicator measures the total amount that is deposited into these platforms via these transfers. However, the version of the metric that is relevant in the current discussion is the one that tells us the average or average number of tokens that are transferred to exchanges.
When the indicator value is high, it means that the average transaction going to these central entities carries a large number of tokens. Naturally, such a trend suggests that big-money investors like whales could be engaging in inflow activity.
On the other hand, a low scale indicates that retail investors are depositing money into exchanges because the average inflow transactions are only worth a small amount.
Now, here’s a chart showing the trend in the 7-day moving average (MA) of Bitcoin exchange flow specifically for cryptocurrency exchange Binance over the past several years:
The value of the metric appears to have been rapidly going up in recent months | Source: CryptoQuant
As can be seen in the chart above, the 7-day moving average of the Binance Bitcoin exchange’s flow has been at relatively low levels in the past years, giving the platform the reputation of being home to retail investors, the smallest entities in the world. network.
At the beginning of this year, the value of this metric was only 0.9 BTC, meaning that the average transaction going to the platform involved less than one token for the asset.
But since then, the index has shown a sharp increase, which means that the exchange has received much larger deposits. This trend may not be just a temporary aberration, as the upward trajectory has been consistent and has continued for a notable period of time.
Recently, the average Binance Bitcoin exchange flow reached a high of 6.8 BTC, which, at the current exchange rate, equals about $614,000. This is a large amount, so the fact that the average deposit on the platform is this large means that whales have been actively flocking.
In previous years, whales seemed to favor other exchanges, but this latest shift shows that some of these massive investors are now regular users of Binance.
Bitcoin price
Bitcoin just hit a new all-time high (ATH) above $90,800 after seeing another 5% rally over the past 24 hours.
Looks like the asset has continuously been discovering new highs recently | Source: BTCUSDT on TradingView
Featured image by Dall-E, CryptoQuant.com, chart from TradingView.com
Comments are closed, but trackbacks and pingbacks are open.