CryptoQuant, a blockchain analytics firm, reported a decline in Bitcoin reserves on Binance as a shift in retail flows from the large cryptocurrency exchange to Coinbase has been observed.
According to the analysis, Bitcoin holdings on Binance have been decreasing over the past few weeks as retail investors have been moving their funds away from the platform and towards other major crypto exchanges such as Coinbase. The total Bitcoin reserves stored on Binance have gone down by over 8.7 million BTC since late March, when the holdings peaked at 13.31 million BTC.
At the same time, Bitcoin holdings on Coinbase have been steadily increasing, rising from 4.14 million BTC in late March to over 5.3 million BTC in mid-May. While the exact cause of the shift remains unknown, analysts believe that a combination of factors including Coinbase’s recent IPO and its expanding retail customer base has caused investors to flock to the popular platform.
While this decline in Bitcoin reserves does not necessarily indicate a negative trend for Binance, it is likely that its recent competitive troubles with the launch of its decentralized exchange and the surge of other exchanges such as Coinbase have caused retail investors to search for alternative service providers.