On-chain data shows that average Bitcoin inflows into Binance have seen a rapid boost over the course of 2024, suggesting that whales are using the exchange more often.
The average Bitcoin inflow into Binance has increased over the past year
As explained by CryptoQuant community analyst Maartunn in the fresh Quicktake postOver the past year, Binance has seen a shift in traffic. An fascinating on-chain metric is “Exchange Inflow,” which tracks transactions moving from self-dealer wallets to exchange-connected addresses.
The customary form of this metric measures the total amount deposited on these platforms through such transfers. Still, the version of the metric relevant to the current discussion is the one that tells us the average or average number of tokens transferred to exchanges.
When the value of the indicator is high, it means that the average transaction going to these central entities carries a immense number of tokens. Such a trend naturally means that big-money investors such as whales may be involved in inward activity.
On the other hand, a low ratio suggests that individual investors are depositing money on exchanges because the average inward transaction is only worth a compact amount.
Here is a chart showing the trend of the 7-day moving average (MA) of Bitcoin Exchange’s average inflow, specifically for the Binance cryptocurrency exchange, over the last few years:
The value of the metric appears to have been rapidly going up in recent months | Source: CryptoQuant
As you can see in the chart above, the 7-day MA of Binance Bitcoin Exchange Inflow has remained relatively low in recent years, giving the platform a reputation as the home of retail investors, the smallest players on the network.
At the beginning of this year, the value of this metric was just 0.9 BTC, which means that the average transaction hitting the platform was for less than one asset token.
Since then, however, the indicator has shown a acute boost, which means that the exchange has received much larger deposits. This trend may not be just a momentary deviation, as the upward trajectory is steady and continues for a significant period of time.
Recently, Binance Bitcoin Exchange’s average inflow peaked at 6.8 BTC, which is worth approximately $614,000 at the current exchange rate. This is a significant sum, so the fact that the average deposit per platform is so immense would suggest that the whales were actively making inflows.
In earlier years, whales seemed to prefer other exchanges, but this latest change shows that some of these huge investors have now become regular Binance users.
BTC price
Bitcoin just set a fresh all-time high (ATH) above $90,800 after rising another 5% in the last 24 hours.
Looks like the asset has continuously been discovering fresh highs recently | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
