New reports suggest that some altcoin trading pairs on Binance are witnessing a sharp decline.
This altcoin has bottomed ‘for a short time’ in trading volume on Binance
The BNB/USDC pair on Binance witnessed an instant drop to 57 USDC ($57) on June 10. The decline was short-lived, after which it quickly returned to its previous levels. As China-based crypto newspaper Wu Blockchain noted, “This reflects that the trading pair has poor transaction depth. A similar situation has happened to WBTC/BTC and ARB/TUSD trading pairs on Binance before.”
The drop in the price of BNB is causing concerns among investors, as was the case with WBTC/BTC and ARB/TUSD before. These dips indicate problems with the trading depth of these pairs.
So far, Binance has not yet made an official statement regarding the event. However, it should be noted that the cryptocurrency markets are quite volatile and prone to sudden price fluctuations. Recurring events across multiple trading pairs raise concerns about the overall stability and depth of the market, especially on the Binance platform.
ARB/TUSD experienced a similar drop in May
On May 28, the ARB/TUSD trading pair on Binance slumped to 0.35 TUSD. Like the BNB/USDC fence of the day, it soon bounced back to its former levels afterwards. During this volatile period, the trading volume of the ARB/TUSD pair skyrocketed to ARB 724,000, well above the normal trading volume. This increase in trading activity indicates that the market is flooded with buy and sell orders as investors try to take advantage of the sudden drop in price.
Binance CEO reports massive exit
The US regulator SEC this week sued Binance and Coinbase one day apart. Within the scope of the lawsuit, there was a 30% decrease in the prices of altcoins, which he described as securities. Meanwhile, cryptocoin.comAs we quoted Binance CEO CZ, in a new tweet yesterday, reported that the stock market lost $392 million in funds on June 10:
According to our data, the net outflow from Binance in the last 24 hours amounted to approximately $392 million. Our wallet addresses are open to everyone. Some 3rd party analytics measure Change in AUM (asset under management) as an outflow in USD. This includes crypto price drops (reducing AUM) as “exits”. It’s 2 different things.
Some even measure only the output, not the inputs. On a day of sharp price action like today, many arbitrage traders move funds between exchanges, often exponentially larger than on regular days. For reference, we processed a net outflow of $7 billion in one day last November.
According to our data, last 24hrs, @Binance net outflow is about $392m.
Our wallet addresses are public. Some 3rd party analytics measure Change in AUM (asset under management) in USD equivalent as outflow. This would include crypto price drops (which decrease AUM) as "outflow".…
— CZ 🔶 Binance (@cz_binance) June 10, 2023
The latest development around Binance has been the sudden drop in the BNB/USDC pair. Meanwhile, the biggest altcoins, which lost 30% during the week, are in a strong recovery period:
- LEFT (Left): 10.92%
- ADA (Cardano): 10.93%
- SHIB (Shiba Inu): 10.01%
- MIOTA (IOTA): 9.56%
- FIL (Filecoin): 9.24%
- SUI (Sui): 9.00%
- MINA (Mina): 8.41%
- GRT (The Graph): 8.86%
- VET (VeChain): 8.04%
- UNI (Uniswap): 8.18%
