According to DeFiLlama, digital currencies totaling $1.6 billion left Binance’s wallets in November.
The outflow was caused by investors’ fears that the trading platform may face problems after the forced resignation of Chapin Zhao from the post of CEO of Binance.
However, in December, the situation stabilized and traders sent $398 million worth of cryptocurrencies to the exchange. Its new CEO Richard Teng said that Binance has no financial problems and is able to meet its obligations to investors.
CCData found that the exchange’s share of the spot and derivatives markets fell to 55% and 48% respectively in 2023. Nevertheless, Binance is still a leading trading platform.
However, its problems have been taken advantage of by its closest competitors OKX, Bybit, Coinbase and Bitget. The dominance of these platforms has increased significantly since the beginning of 2023.
The underlying asset of the Binance Coin (BNB) ecosystem has grown by 686% over the past three years, Bloomberg notes. The altcoin’s fall in November was the result of weakening confidence in the cryptocurrency company.
In addition, the scope of BNB’s use has decreased, which caused the price to fall to $243 in early December.