On-chain data shows that average Bitcoin inflows into Binance have grown rapidly throughout 2024, meaning whales are using the exchange more.
Bitcoin average exchange inflows to Binance have surged over the past year.
As CryptoQuant community analyst Maartunn explains in a new Quicktake post, Binance has seen a change in traffic over the past year. The on-chain metric of interest here is “Exchange Inflow,” which tracks transactions moving from self-managed wallets to exchange-linked addresses.
The traditional form of this indicator measures the total amount of money deposited into the platform through these transfers. Nevertheless, the version of the indicator that is relevant to the current discussion is the one that tells us the average or average number of tokens being transferred to the exchange.
A high value of the indicator means that the average transaction moving to these central entities involves a large number of tokens. This trend naturally means that high-net-worth investors like whales can participate in the inflow activity.
On the other hand, a low indicator suggests that retail investors are keeping their money on the exchange because the value of the average inflow trade is very low.
We now have a chart showing the 7-day moving average (MA) trend of average Bitcoin exchange inflows to cryptocurrency exchange Binance over the past few years.
The value of the metric appears to have been rapidly going up in recent months | Source: CryptoQuant
As you can see in the graph above, the 7-day MA of average Binance Bitcoin exchange inflows over the past few years has been relatively low. This has given the platform a reputation as a home for retail investors. network.
At the beginning of this year, the value of this indicator was only 0.9 BTC. This means that the average transaction moving to the platform involved less than a single token of the asset.
However, since then the indicator has shown a sharp increase, suggesting that the exchange has received significantly more deposits. This trend may not be a temporary deviation. This is because the upward trajectory was consistent and continued for a significant period of time.
Average Binance Bitcoin exchange inflows recently peaked at 6.8 BTC, which is worth about $614,000 at current exchange rates. This is a significant amount, so seeing an average deposit of this amount on the platform means that whales are actively flowing in.
Although whales initially seemed to prefer other exchanges, recent changes show that some of these huge investors have now become regular Binance users.
BTC price
Bitcoin set a new all-time high (ATH) above $90,800 after surging another 5% in the past 24 hours.
Looks like the asset has continuously been discovering new highs recently | Source: BTCUSDT on TradingView
Dall-E, featured image from CryptoQuant.com, chart from TradingView.com