Binance, the world’s largest cryptocurrency exchange, has seen a net inflow of $1.2 billion over the past 24 hours, according to DeFiLlama’s CEX transparency metrics. The figure is well above the inflows its major rivals, including OKX and Bybit, are receiving.
The large inflow of capital reflects users' confidence in Binance and their positive outlook on the future of the cryptocurrency market, even with recent volatility, DeFiLlama said.
The massive inflows are also a positive sign for Richard Teng, who took over as chief executive following a multimillion-dollar fine in the United States for illegal activities and the departure of founder Changpeng Zhao.
Richard Teng comments: “This is one of the largest net capital inflow days of 2024. Despite facing significant market declines in the past few hours, this potentially signals investor confidence and interest in buying at a lower cost when they feel the time is right.”
“Current market trends also validate this observation as we are witnessing an uptick in the prices of major tokens. According to our internal data, yesterday was also one of the highest trading volume days in 2024,” he added.
In January alone, Binance attracted $3.5 billion, just two months after its owner pleaded guilty to crimes including money laundering and sanctions evasion. The platform managed to pay the entire $4.3 billion fine from the Department of Justice without selling any crypto assets.
That said, Teng still faces numerous challenges. He must establish a global headquarters, appoint a board, and secure an independent monitor for three years. Binance also lacks full licenses in major cryptocurrency hubs, and its U.S. subsidiary is dealing with an SEC lawsuit.
The risks of operating in local markets without official approval recently emerged when India blocked access to Binance and other offshore platforms by removing their apps from the Apple (NASDAQ:) and Google (NASDAQ:) stores. Last year, countries from Australia to Belgium also cracked down on Binance for operating without the necessary permits.
