Binance Draws $1.2 Billion in Net Inflows in Last 24 Hours Despite Market Selloff

Binance, the largest cryptocurrency exchange globally, has recorded a net inflow of $1.2 billion in the past 24 hours, surpassing the inflows of its major competitors, such as OKX and Bybit, according to DeFiLlama’s CEX Transparency metrics.

This significant influx of capital indicates continued user confidence in Binance and a positive outlook on the future of the cryptocurrency market, despite recent volatility, as noted by DeFiLlama.

The substantial inflows are also a promising development for Richard Teng, who stepped in as CEO after the exchange faced a multibillion-dollar penalty from U.S. authorities for illegal activities and the exit of founder Changpeng Zhao.

Teng remarked, “This represents one of the highest net inflow days of 2024. Despite experiencing notable market downturns in recent hours, this may indicate that investors are confident and looking to buy at a lower cost when they feel it’s the right time.” He also mentioned that current market trends support this observation, with a rebound in major token prices. Internal data reveals that the previous day also had one of the highest trading volumes of 2024.

In January alone, Binance attracted $3.5 billion, just two months after its owner admitted guilt to charges related to money laundering and sanctions evasion. The exchange successfully paid a $4.3 billion fine imposed by the Department of Justice without liquidating any of its crypto assets.

However, Teng will need to navigate several challenges moving forward. He must establish a global headquarters, appoint a board, and ensure there is an independent monitor for three years. Binance also lacks full licensing in key cryptocurrency hubs, and its U.S. affiliate is currently entangled in a lawsuit with regulatory authorities.

The risks of operating in local markets without proper approval were highlighted recently when India restricted access to Binance and other offshore platforms by removing their applications from major app stores. Additionally, last year saw various countries, from Australia to Belgium, take action against Binance for operating without the required permits.