Jun 29, 2022 03:30AM ET
By: AnalysisWatch
Over a two-year period, the Bitcoin (BTC) holdings of the two popular cryptocurrency exchanges, Binance and Coinbase, graphically show an almost perfect negative correlation. While the Binance exchange kept accumulating BTC from 2020 to the present, Coinbase saw a steady decrease in its BTC holdings during the same period.
This information comes from Glassnode, a blockchain data and intelligence platform.
Binance has held more than 250,000 BTC in its cold wallet since 2019, which has gradually increased to 600,000 BTC over three years.Coinbase already had more than one million bitcoins in its cold wallet in 2019, but it has gradually decreased to its current size of just over 500,000.
These numbers capture how crypto traders interact with each exchange, whether they are depositing or withdrawing. While the BTC price has dropped to $17,588 in recent weeks, the Binance Cold Wallet balance has increased by 101,266 BTC over the same period.
Other popular exchanges such as FTX, Crypto.com, and KuCoin only have up to 100,000 BTC in their cold wallet from 2017 to present. However, data from CoinMarketCap shows that FTX and KuCoin are among the top five exchanges with the highest transaction volume in the last 24 hours.
Coinbase, FTX, and KuCoin have a combined daily trading volume of $4.45 billion, but Binance is far ahead with $11 billion.
It can be observed that most crypto traders prefer Binance over others because of its wide range of support services. For example, binance supports over 45 fiat currencies, including African currencies.
Coinbase, on the other hand, only accepts the US dollar, the euro, and the British pound.