The year 2024 has marked a significant shift in the cryptocurrency industry, with exchanges reporting sharp increases in average Bitcoin and USDT deposits, signaling heightened institutional participation. Average Bitcoin deposits across all exchanges have risen from 0.36 BTC in 2023 to 1.65 BTC, while USDT deposits surged from $19.6k to $230k. These larger deposits reflect growing interest from professional and corporate investors, distinguishing institutional activity from retail trading.
Binance has led the industry in this institutional growth, posting the largest increase in average Bitcoin deposits among major exchanges. This aligns with the CEO’s remarks on a 40% expansion in the platform’s institutional business. Binance saw its average daily Bitcoin deposit rise by 2.77 BTC, significantly outpacing Kraken and Coinbase, which grew by 0.56 BTC and 0.41 BTC, respectively. In USDT, Binance and Bitfinex recorded the largest gains, with $94k and $566k increases, respectively, bringing Binance’s total USDT reserves to an all-time high of $23 billion (ERC-20). Bitfinex' large increase is skewed by the large USDT deposits it receives from Tether's Treasury, the issuer of USDT.
Indeed, On November 3, 2024, Binance achieved a record daily Bitcoin deposit average of 6.85 BTC ($465k), a 9.6x increase from prior levels and a 14x growth in dollar terms. Similarly, its average daily USDT deposit reached $303k, the highest since March 2022. These milestones highlight Binance’s dominance in attracting institutional flows.
The surge in institutional funds underscores growing confidence in the cryptocurrency sector, supported by improved regulatory clarity, robust infrastructure, and enhanced risk management frameworks, further solidifying crypto’s role as a maturing financial asset class.
Written by CQ Research
