Over a two-year period, the Bitcoin (BTC) holdings of two famous cryptocurrency exchanges, Binance and Coinbase, exhibit a nearly perfect negative connection. While the Binance exchange continued to accumulate BTC from 2020 to the present, Coinbase faced constant depletion of its BTC holdings throughout the same time span.
This information comes from Glassnode, a blockchain data and intelligence platform.
Binance has kept more than 250,000 BTC in its cold wallet since 2019, gradually expanding to 600,000 BTC in three years. Coinbase held more than one million sats of bitcoin in its cold wallet in 2019, but it has progressively declined to slightly more than 500,000 now.
These figures reflect how cryptocurrency traders engage with each exchange, whether they are depositing or withdrawing funds. While the price of Bitcoin has dropped in recent weeks to $17,588, the balance of the Binance cold wallet has increased by 101,266 BTC in the same time frame.
Other famous exchanges, including as FTX, Crypto.com, and KuCoin, only have up to 100,000 BTC in their cold address from 2017 to date. However, according to CoinMarketCap data, FTX and KuCoin are among the top five exchanges in terms of transaction volume in 24 hours.
The aggregate 24 hour trading volume of Coinbase, FTX, and KuCoin is $4.45 billion, but Binance is far ahead at $11 billion.
Most cryptocurrency traders prefer Binance above others due to its extensive support services. Binance, for example, accepts over 45 fiat currencies, including African currencies. Coinbase, on the other hand, only accepts US dollars, euros, and British pounds.