Binance, the world's largest digital currency exchange, experienced a significant drop in its stablecoin reserves over the past several months, with the value plummeting from $24.5 billion in December 2022 to $10.7 billion as of Wednesday, representing a 65% decrease, according to a CryptoQuant analysis.
What Happened: Despite these periods of high net outflows, Bitcoin BTC/USD and Ethereum ETH/USD reserves have remained healthy, as per the analysis.
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According to CryptoQuant, Bitcoin reserves have grown from 509,000 in December to 581,000 currently. Ethereum reserves stand at 4.48 million compared to 4.42 million back in December.
It is important to note that Binance and its CEO, Changpeng Zhao, are currently facing a lawsuit from the Commodity Futures Trading Commission, or CFTC, which accuses the company of violating trading and derivatives regulations.
The regulatory implications of the lawsuit had caused significant fear, uncertainty and doubt, or FUD, among regulators and investors.
CryptoQuant analysis further shows that Binance's net flow in BTC has been negative, with 78,744 Bitcoins leaving the exchange within a week.
Price Action: At the time of writing, BTC was trading at $28,717, up 2.40% in the last 24 hours, according to Benzinga Pro data.
Read More: Bitcoin, Ethereum, Dogecoin Spike Despite Crypto Exchange Shutdown After SEC Lawsuit: Analyst Says Apex Crypto Has 'Plenty Of Room To Grow'
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