The volume of BTC in the cryptocurrency exchange, Binance, has continued to rise, while that of Coinbase has been reducing. This is according to data available at Glassnode as seen on June 28. As shared by Bitcoin Archive, the charts show that since May, 2020, there has been a rapid rise in the BTC held on Binance.
Another chart from Glassnode showing the number of coins held at Coinbase indicates that the volume of BTC held at the US-based exchange has been reduced since September 2020. Even though no one is certain the reason for the trend, some users aired their opinions on the possible causes.
CZ Wants To Be Sure
In his reaction, the Binance CEO, Changpeng Zhao, wanted to know how reliable the data is and asked if this it is true that Binance could be the beneficiary of Bitcoin outflow from Coinbase. @Weedcrypto, a user on Twitter said that the reason could be that the Binance CEO believes in the market more than Coinbase:
“That’s Binance buying all Coinbase btc supply to sell it for more later, because CZ believes in it more than Coinbase”
Meta-M @dex_universe also believes that the approach of CZ to the market is responsible for the growth of the exchange, even in a bear market. He said that this is a time that many exchanges are laying off staff to balance the books, but the Binance CEO has shown that he has confidence in the market by doing a lot of groundwork when things aren’t looking so good for the market.
“Coinbase cut 30% of employers. Binance open 2000 jobs. When this cryptocrash ends who will be more workable?” –@UchihaHasCrypto
@waazaaFLOKI believes that the outlook of the two exchanges in a bear market differs. He said that while Coinbase cries, Binance respects the dip and sees it as an opportunity to buy more bitcoins.
US Trend in A Bear Market?
A market speculator, @westsideguy3 spoke on the global trend differing from the US. He said that the bear market is a time when US residents mostly dump their BTC while the global market accumulates more coins.
Alexander Kitov @_akitov, the Senior Product Manager, Crypto at ZenGo explains,
“The exact opposite, balance on exchanges go up if the exchange customers are selling and the exchange (the counterparty) needs to buy that supply to fulfill orders Alternative, if the customers are buying it all up, then the exchange loses the coins that they hold”
The Market Observer puts it all on trading fees and market liquidity.
“Coinbase fees aren’t competitive. Traders who have a lot to buy/sell will likely move from Coinbase to Binance or Ftx. Save money plus the liquidity is better too.”- Market Observer
Future Consequence for Exchange
In their reaction, BECOME UNGOVERNABLE @ungovernable91, said that the impact of the trend would be an exponential growth for Binance, especially considering that Coinbase fees are not competitive.
“If this is true then it’s probably going to accelerate exponentially given that Binance has no spot fee on Btc now and Coinbase has exorbitant fees, it’s a no brainer for whales.”
Investors On Why They Left Coinbase
Nakamooten @jtmooten, an investor who was a Coinbase customer said he left the exchange due to policies that he considered unfavorable.
“I pulled all my remaining BTC off of Coinbase when they implemented the Dutch Central Bank regulations (which a judge found illegal) requiring you to verify transfers to your own hardware/software wallet.”
Another user, Jimmy Bluf, said that the model employed by Coinbase is failing because of high fees and stringent demands in pulling out assets. To Yet another, the issue has been technical, such as stuck trades.
“I’ve honestly had so many technical issues with Coinbase. Trades stuck for hours(SHIB), new listings being delayed (SHIB and STX were notorious examples) and so many sudden changes to their policies (like the Coinbase Card rewards offered 4% XLM but now they offer at best 2% AMP)“
