Binance’s Q1 numbers reveal this about the future of the exchange. Assessing…

• Binance lost 16% share of its global trading volume in Q1 2023
• The net stablecoin outflow reached -$295 million/day, which was the largest ever outflow witnessed by the exchange 

Binance lost a sizable chunk of the global market share in the first quarter of 2023, as regulatory bodies tightened their chokehold around the world’s largest cryptocurrency exchange.

As per a report by crypto market data provider Kaiko, the crypto behemoth lost 16% share of global trading volume after the U.S. Commodity Futures Trading Commission (CFTC) accused the organization of violating certain compliance rules to expand its operations.

The lawsuit-induced FUD thus, resulted in a radical shake-up of its exchange reserves with users withdrawing funds for self-custody.

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Record stablecoin outflows

As per a report by on-chain analytics firm Glassnode, recent stablecoin outflows outpaced inflows. This indicated that a larger number of stablecoins were withdrawn from the trading platform as compared to the overall deposits.

The daily net flow of stablecoins flowing through Binance was plotted on a chart as shown below. Furthermore, a 14-day EMA was also used to offset the impact of daily flows.

Recently, the net outflow reached -$295 million/day, which was the largest net outflow in the history of the cryptocurrency exchange. According to the graph, the indicator was already on witnessing a downtrend and in a negative area over the past few weeks.

Source: Glassnode

As per Glassnode, the primary reason behind the record outflows was the drastic increase in redemptions of Binance USD [BUSD], following the news of Paxos halting the issuance of the stablecoin in February.

Additionally, the graph below captured the notable decline in the balance of the third-largest stablecoin on Binance exchange. This was once the most-preferred stablecoins on the platform.  From a peak of almost $21 billion during November 2023, it shrunk to $6 billion at press time.

Source: Glassnode

Status of the BNB Chain

As per data from DeFiLlama, the stablecoin market cap on the BNB Chain [BNB] was $6.42 billion at the time of writing, with a marginal weekly growth of 0.04%.

Tether [USDT] had a market dominance of nearly 50% while BUSD’s market cap shrunk by 20% to stand at $2.21 billion over the last 30 days, capturing 34% of the share.

Source: DeFiLlama

How much are 1,10,100 BNBs worth today?

The ecosystem’s native token BNB made gains of 6.79% over the last month, per data from CoinMarketCap. However, with regulatory headwinds, the pace of growth subsided with the token growing by just 0.23% on a weekly basis.