- Despite market turmoil, Binance’s assets showed only modest declines, allaying concerns.
- Binance’s CEO addressed FUD, clarifying the outflow and highlighting the impact of price declines.
The recent lawsuit filed by the SEC against Binance and Coinbase has sent shockwaves through the crypto community, particularly affecting Binance and its own token, BNB. Amidst the turbulence, many questions are arising about the stability of Binance’s assets and its ability to alleviate the FUD surrounding the exchange and its token.
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Looking at the belongings
Despite concerns, data from on-chain analytics indicated that Binance’s assets have not experienced a significant decline. The total value of assets held on the platform has dropped about 13% over the past week, mainly due to the drop in cryptocurrency prices.
According to Binance’s public address, total assets have not fallen significantly.
Total assets are down ～13% over the past week, which is largely due to cryptocurrency price declines.
Most assets are down between 6% and 38% in the last 7 days. @cz_binance pic.twitter.com/VYXLiTSr89
— Lookonchain (@lookonchain) June 10, 2023
While Binance’s assets have not declined substantially, its reserves have been on a declining trend for the past few months. According to data from Dune Analytics, reserves showed significant reductions. As of now, the exchange’s reserves consist of 28.1% Ethereum, 17.4% BNB, and 17.0% BUSD.
Source: Dune analysis
Some damage checks
In addition, Binance’s CEO, CZ, increased Twitter to allay concerns about stock market outflows. CZ clarified that the reported net outflow of approximately $392 million in the past 24 hours includes the impact of crypto price declines and should not be interpreted solely as a negative development.
CZ stressed that measuring changes in assets under management (AUM) and outflows are different, and some platforms overlook inflows. On days with significant price movement, arbitrage traders often move significant amounts between exchanges, exceeding normal activity levels.
Despite CZ’s efforts to reduce FUD, overall activity on Binance has dropped, negatively impacting the revenue generated by the protocol.
Source: token terminal
Will BNB brb?
Currently, BNB is trading at USD 236.69 with limited signs of a recovery. Development activity continued to slow down, suggesting that new upgrades and updates on the BNB network may take longer than expected.
Realistic or not, here is the BNB market cap in terms of BTC
Source: Sentiment
In addition, BNB’s trading volume experienced a strong increase during this period. The volume increased from 250 million to 750 million in recent days.
