Binance Bitcoin Holdings Flips Coinbase Amid Insolvency Rumors
The battle for supremacy among crypto exchanges has often come down to the amount of bitcoin they hold. This is because of the prestige that comes with pioneering cryptocurrency and, of course, the value it commands. For the longest time, Coinbase has maintained its leadership in the market when it comes to bitcoin holdings. However, it seems there is a new king in town as Coinbase’s bitcoin holdings have fallen.
Binance Leads Coinbase
The data analysis company Glassnode is known for delivering data in the market using on-chain calculations. This time, the firm has come forward with a shocking discovery that puts Coinbase’s grip on the market at risk. The latest report showed that Coinbase is no longer the exchange with the largest bitcoin balances in the space. That title now belongs to Binance, which is hailed as the largest cryptocurrency exchange in the world due to its volume.
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The finding was announced on Twitter by market analyst Will Clemente when he posted a screenshot from the Glassnode report. It showed that while Coinbase’s bitcoin holdings had continued to decline over the past year, Binance had soaked up a significant amount of bitcoin.
Binance BTC becomes largest exchange BTC | Source: Glassnode
According to Glassnode, Coinbase now has less than 600,000 BTC. Binance, on the other hand, saw its Bitcoin balances grow to a new all-time high amid the bear market. A comparison of the two balances over time shows that the majority of BTC leaving Coinbase most likely flowed into competitor Binance.
Bitcoin balances may not be accurate
Following Will Clemente’s post on Twitter, a Coinbase employee has come out to refute the allegations, saying that Glassnode had used irrelevant calculations for its report. Therefore, there is no way that the findings can be correct given the bitcoin that is kept in cold storage.
BTC price recovers to high $22,000s | Source: BTCUSD on TradingView.com
The Binance flip isn’t the only thing that has been a cause for concern for investors. Over the past week, various rumors have been circulating on social media claiming that the crypto exchange was insolvent. This came after the Voyager and Celsius insolvency problems, fanning the flames of the rumor.
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There have also been reports from Coinbase users that they have not been able to withdraw money from the exchange. These problems have accumulated to what is now a lower trust score for the exchange among cryptocurrency users. The exchange recently shut down its affiliate marketing program, fueling rumors of an impending crisis for Coinbase.
Featured image from Forbes, chart from TradingView.com
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