Behemoth crypto exchange Binance has seen massive withdrawals in the past week and—on Tuesday—the highest amount of one-day withdrawals since June, Nansen data has revealed.
Binance’s international arm saw over $8.78 billion leave its exchange and $5.1 billion in incoming funds, meaning the exchange faced a net outflow of roughly $3.66 billion. While such data only refers to Binance’s Ethereum and ERC-20 token movements, approximately 63% of Binance’s portfolio is on Ethereum and the outflows are much larger compared to other crypto exchanges over the same period.
Binance’s $3.66 billion weekly outflow is leagues more than Coinbase, for example, which saw a net outflow of roughly $574 million from its main exchange and $248 million from its Coinbase Custody service. Binance US saw a net outflow of over $38.7 million in that same period.
Web3 investment firm Jump Crypto is among the entities that removed funds from Binance, according to Nansen. On Ethereum, Jump withdrew about $18.4 million this week and pulled about $123.4 million from Binance last week.
While Binance is currently seeing a high volume of withdrawals, the exchange still holds roughly $58.9 billion in assets at time of writing, most of which are in Binance’s stablecoin BUSD, the stablecoin Tether, Bitcoin, and Ethereum.
According to Nansen’s portfolio tracker, Binance’s total portfolio has decreased by $3.6 billion in just the past eight hours.
Binance’s exchange token, BNB, is the fourth-largest cryptocurrency by market capitalization and is down about 2% in the past 24 hours, and down 8% in the past two weeks, according to CoinGecko data. Those declines come despite Ethereum rising 12% in the past two weeks and Bitcoin seeing a 9% uptick in price.
In response to the outflow news, Binance CEO Changpeng “CZ” Zhao said that it’s just “business as usual.”
“We saw some withdrawals today,” Zhao said. “I actually think it is a good idea to ‘stress test withdrawals’ on each CEX on a rotating basis.”
Early Tuesday morning, Zhao explained that USDC withdrawals on Binance US had been temporarily paused due to a token swap issue where the exchange was unable to convert funds due to a New York bank—the liquidity provider for the swap—being closed. The withdrawals have since resumed.