In the last 24 hours, Binance and Coinbase have seen a combined net outflow of $597.2 million across all platforms. This information was obtained from data supplied by Nansen, a blockchain analytics firm. Nansen further broke down the data to show that Binance and its US subsidiary, Binance US, recorded a negative netflow of $491.9 million while Coinbase saw $105.3 million.
What is Netflow?
Netflow is the summation of what has been deposited and withdrawn. If an exchange has a negative netflow, it indicates that more assets are being withdrawn than deposited. If it has a positive netflow, then more assets are deposited into the exchange.
Withdrawals Post-SEC Lawsuit
The current outflow is less than what was recorded 24 hours after the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance on June 5. At that time, Nansen reported that over $3 billion was withdrawn from the platform, leading to a negative netflow of $1.43 billion.
Binance US had a positive netflow of $78 million 24 hours after the SEC lawsuit. However, the regulator moved to freeze assets held by the US-based firm, and the netflow subsequently turned negative. Nansen revealed that withdrawals on Binance US were $123.6 million as of 12:30 UTC. This supports a previous report by CryptoSlate that revealed an increase in withdrawals by Binance US customers following the SEC’s action.
Impact of SEC Lawsuit on Binance
Louis N, an on-chain analyst at 52hz ALERTS VENTURES, opined that the data shows that the SEC’s recent actions have not impacted Binance as much as in the past. Binance and Coinbase have both stated that they would defend themselves against the SEC’s lawsuit in court. The SEC’s approach towards the industry has been criticized by several crypto stakeholders, including two US senators.
Binance and Coinbase have experienced a significant outflow of funds in the last 24 hours. While this is less than what was witnessed after the SEC’s lawsuit against Binance, it still indicates a level of uncertainty among investors. The impact of the SEC’s actions on Binance and Coinbase remains to be seen. However, both firms have expressed their commitment to defending themselves against the lawsuit.