By Richard Hines
After a surge in trading activity and deposits in Binance following the FTX crash, Binance surpassed Coinbase as the exchange with the largest bitcoin holdings.
Binance Stands Strong Against Market Tides
According to a CryptoQuant post, Binance has surpassed Coinbase as the exchange with the largest reserve of Bitcoins. This statistics report follows the events that happened after the FTX crash when exchanges witnessed investors moving their funds away from centralized exchanges to their personal wallets.
This exchange reserve is a metric that calculates the total amount of Bitcoin held in the exchange’s wallet.
When the metrics rise, it indicates that investors are holding their tokens and not selling them, implying that they are buying more tokens. When the metric falls, it indicates that holders and investors are dumping their investments into the market and selling off to make profit.
A positive metric can indicate a bull run season, whereas a negative metric can indicate a dip season or bear market.
According to chart reports, the metrics have been dropping with a steep decline in the chart, and holders have been selling and dumping their tokens to exchanges and the market in general.
The cause of this drop is attributed to the recent FTX collapse. This bankruptcy instilled fear in investors, exposing the dangers of centralized exchanges.
Centralized Exchanges Versus Decentralized Exchanges
Centralized exchanges, such as Binance, Coinbase, and FTX, have their operations governed by an entity that decides on the exchange’s activities. A centralized exchange can decide to halt all withdrawals, and investors have little to no recourse.
This brought to the public’s attention the risks associated with centralized exchanges compared with decentralized exchanges.
Following the FTX crash, investors rushed to keep their funds in their own wallets, withdrawing them from exchanges.
However, despite the downtrend observed with exchanges, one exchange has stood out among the tides, which is none other than Binance exchange. Since the crash, Binance has seen an increase in reserve holdings and transactions.
This was not the case immediately after the crash, as Binance also followed the trend of FUD (Fear, Uncertainty, and Doubt), but over the past few days, market activities picked up in Binance, propelling it to be the exchange with the largest bitcoin holdings.