After making a historic agreement with the US Department of Justice (DOJ), Binance, the world’s largest cryptocurrency exchange, faced significant on-chain challenges. Despite a decrease in reserves and a significant decline in assets, Binance proves its resilience with its ongoing dominance and noteworthy on-chain metrics.
According to CryptoQuant’s latest report, Binance experienced a 20% drop in on-chain health and a decrease in reserves to approximately 500,000 BTC from the all-time high levels. This drop in reserves is recorded as the largest decline in the past five years for Binance.
The decrease in BTC deposits to Binance indicates a decline in interest in transferring assets to this platform. On-chain data reflects a changing landscape as users turn to alternative platforms following the DOJ agreement.
Despite regulatory pressures and asset outflows, Binance maintains its dominance with the highest BTC reserves and 30-day cumulative net inflows. The exchange, which experienced a decrease in market share after the DOJ agreement, quickly regained approximately 50% market share.
The departure of Binance founder Changpeng Zhao (CZ) from the CEO position and the $50 million fine triggered a temporary setback for Bitcoin from Binance to other exchanges. However, the exchange quickly recovered by demonstrating resilience in the face of challenges.