Adrian Zduńczyk, the founder of blockchain consulting firm The Birb Nest, has called attention to the rise in inflows and on-chain assets on Binance, attributing this trend to increasing confidence in the platform's recently-appointed leadership. Binance, as the world's largest cryptocurrency exchange, seems to be manifesting financial resilience and strength, particularly following its recent settlement over historical compliance issues with the U.S. government.
Data from decentralized finance (DeFi) metrics provider DefiLlama reveals that Binance saw around $1.5 billion worth of inflows in the week preceding Dec. 8. This figure substantially surpasses the combined total inflows of the following 30 largest exchanges. Binance also reportedly holds over $74 billion in on-chain assets, dwarfing the $13 billion held by its closest competitor.
According to Zduńczyk, these numbers suggest a mass endorsement from users, ostensibly attracted by Binance's strong compliance stance under the guidance of new CEO, Richard Teng.
This observation aligns with the sentiments of Mason Versluis, founder of Paytience Indicators, pointing out the noticeable difference in inflow trends between Binance and other major exchanges.
Binance announced on Nov. 21 that it had settled with the Department of Justice for a whopping penalty of $4.3 billion. This resolution also necessitated third-party auditing of Binance's transactions and accounts. As part of the settlement agreement, Binance founder Changpeng Zhao (CZ) would step down as CEO, replaced by Richard Teng, the company’s ex-Global Head of Regional Markets.
The appointment of Teng, who assumed his new role in Aug. 2021, promises a strategically reformed approach following Binance's settlement, having held significant positions at global financial entities. These include CEO of the Financial Services Regulatory Authority (FSRA) at Abu Dhabi Global Market (ADGM), Chief Regulatory Officer of the Singapore Exchange (SGX), and Director of Corporate Finance at the Monetary Authority of Singapore.
