Cryptocurrency exchanges have experienced a sharp rise in average deposits in 2024, primarily driven by larger transactions from professional and corporate investors.
A Dec. 3 analysis by CryptoQuant highlights Binance as leading the growth, with an increase of 2.77 Bitcoin (BTC) in its average daily deposits. Other exchanges like Kraken and Coinbase also saw growth but at smaller rates of 0.56 BTC and 0.41 BTC, respectively.
General Market Trends
The average size of Bitcoin deposits across exchanges has risen significantly, from 0.36 BTC in 2023 to 1.65 BTC. Similarly, deposits in Tether (USDt), a stablecoin often used in crypto transactions, skyrocketed from $19,600 to $230,000. This trend indicates growing participation by institutional investors and market makers who inject large amounts of capital into the market.
According to CryptoQuant, “As with Bitcoin, larger USDT exchange deposits are typically made by institutional investors or market makers.”
Binance’s Record-Breaking Deposits
Now, Binance set a new milestone on November 3, with a daily Bitcoin deposit of 6.85 BTC valued at $465,000. This figure represents a nearly tenfold increase from previous levels. The exchange also recorded its highest daily deposit of USDt ($303,000) since March 2022, further emphasizing its role as a leader in the market.
Binance CEO Richard Teng revealed that the exchange’s corporate clients grew by 40% in 2024.
What You Should Know
Investors’ improved sentiment toward digital assets can be partially attributed:
- Donald Trump’s reelection in the U.S. which has boosted investor confidence. His administration is expected to introduce favorable regulations for cryptocurrencies, including plans to replace the Securities and Exchange Commission leadership and establish a strategic U.S. Bitcoin reserve.
- The introduction of spot Bitcoin exchange-traded funds (ETFs) which has facilitated institutional involvement in digital assets. As of November, these ETFs collectively managed over $30 billion, with $6.87 billion flowing into them in just the past month.
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