Binance Exchange ranks above its core rivals like Coinbase and Kraken as the right channel for corporate investors to enter the market
The current inflow trend on Binance this year is proof that the crypto market is no longer a playground dominated by retail traders. Instead, institutional investors are making their presence known with unprecedented deposit volumes. Crypto exchanges have reported unprecedented growth in Bitcoin BTC $108 791 24h volatility: 0.7% Market cap: $2.17 T Vol. 24h: $76.48 B and Tether’s USDT $1.00 24h volatility: 0.0% Market cap: $182.58 B Vol. 24h: $126.09 B inflows.
Per a CryptoQuant Analysis, this year has significantly increased professional and corporate participation. The average Bitcoin deposit skyrocketed from 0.36 BTC in 2023 to 1.65 BTC. USDT deposits, on the other hand, surged from $19,600 to $230,000, showcasing a clear shift toward larger transactions.
Binance: The Institutional Powerhouse
Binance stands at the forefront of this transformation, capturing the largest share of institutional deposits. Its average daily Bitcoin deposits soared by 2.77 BTC. The exchange left competitors like Kraken and Coinbase Global Inc (NASDAQ: COIN) trailing with increases of 0.56 BTC and 0.41 BTC, respectively.
On November 3, Binance broke its records by logging an average Bitcoin deposit of 6.85 BTC, worth $465,000. Accompanying this was its USDT’s daily deposit peak of $303,000, the highest record seen since 2022.
These milestones underscore Binance’s ability to attract corporate capital, solidifying its reputation as the institutional leader in crypto.
Binance’s aggressive approach to crypto listings remains a key driver of its success. This move has helped the exchange achieve record-breaking trading volumes and institutional inflows. Regularly listing popular crypto assets, the platform stays ahead of market trends and attracts many investors.
The Trump Effect: Political Shifts Drive Institutional Optimism
Donald Trump’s reelection into the White House has sparked renewed excitement in the crypto industry, particularly among institutional investors. Trump’s campaign promises, including bringing favorable crypto regulations, have resonated with key players in the sector.
His proposal to establish a U.S. Bitcoin reserve aligns with the industry’s growing interest in government-backed digital assets. These commitments have fueled optimism for a more supportive regulatory environment.
Investors are hopeful that Trump’s administration will foster a more supportive environment for digital assets. His pledge to reform the Securities and Exchange Commission’s (SEC) leadership has further fueled this optimism. This anticipated shift could pave the way for policies that boost confidence and growth in the crypto market.
Beyond platforms like Binance, Spot Bitcoin Exchange-Traded Funds (ETFs) have also opened a new pathway for institutional investors to enter the crypto market. ETFs have connected traditional finance and crypto by enabling direct investment through trusted and regulated platforms.
BlackRock, a leading asset manager, has played a pivotal role in this shift. The firm now manages over $48 billion in Bitcoin assets, worth 2.3% of the global BTC supply. The widespread adoption of ETFs has increased capital inflows into crypto, signaling growing acceptance and legitimacy within mainstream finance.
This development has helped solidify digital assets as a key instrument for institutional portfolios. With institutions now driving the market, 2024 will likely be remembered as the year crypto finally integrated with Wall Street investors.
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