Both Binance and Coinbase were grappling with insecurity and uncertainty in the world of cryptocurrencies. The Securities and Exchange Commission (SEC) of the U.S. took forceful measures against them. The charge fallout caused concerns among market participants due to a resulting outflow of funds from these platforms.
As per the most recent update by Glassnode- a reliable cryptocurrency analysis organization, Binance has been experiencing regular net outflows of Bitcoin (BTC), mainly due to SEC allegations. The charges made by the SEC have caused Binance to reduce Bitcoin outflows.
In fact, the exchange recorded its 8th largest net outflow on record, with a staggering -14,000 BTC being withdrawn. This development raises questions about the overall stability of Binance in the face of regulatory challenges.
However, it’s worth noting that when assessing the severity of these net outflows in relation to the total balance held on Binance Exchange addresses, the impact can be considered relatively minimal.
The outflows amounted to only -28.6K BTC, which is a small fraction when compared to its all-time high (ATH) balance of 704.5K BTC. This observation suggests that Binance’s resilience may be greater than initially feared, despite the outflows.
Coinbase: Significant Redemption of cbETH After SEC Lawsuit
Meanwhile, according to data from DUNE, another leading blockchain analytics provider, Coinbase has also been feeling the heat from the SEC lawsuit. In the past two days alone, a significant amount of cbETH (Coinbase Ethereum) has been redeemed.
A total of 35.81k cbETH was redeemed, with 27.28k cbETH being withdrawn on June 6 alone. This single-day redemption amount represents the second-largest in the history of the platform.
Coinbase, which currently holds the position of the second-largest label entity for Ethereum (ETH) liquidity staking, has made it clear that it will not halt its staking services despite the regulatory pressures it faces.
This commitment demonstrates Coinbase’s determination to weather the storm and continue providing essential services to its users.
However, the SEC charges have sent shockwaves through the cryptocurrency market, leaving traders and investors on edge. The impact of these legal actions on the long-term stability and future of both Binance and Coinbase remains uncertain.
Nevertheless, market participants will closely monitor the developments in the coming days as these exchanges navigate the challenging regulatory landscape.