Analysis of Binance User Funds and Cryptocurrency Trends
The Securities and Exchange Commission dropping its probe into Paxos over its branded Binance stablecoin (BUSD) has raised questions about the impact on Binance. However, data shows that Binance users are unfazed by the investigation, with user funds on the platform increasing significantly over the past year.
According to Binance’s monthly proof of reserves reports, the firm disclosed $115 billion in user funds at the start of July, up from $61 billion one year ago. This growth comes despite reports of a Department of Justice investigation into Binance in December 2022, which saw user funds at $45.6 billion.
The investigation into Paxos led to a significant decrease in BUSD circulation, with other stablecoins filling the gap. However, the overall confidence in Binance remained strong, as evidenced by the increase in user funds held in non-dollar-pegged crypto assets.
The data also shows a shift in the types of cryptocurrencies Binance users are holding, with tokens like curve DAO, arbitrum, and aptos seeing significant increases in balances. On the other hand, tokens like chiliz and shiba inu experienced decreases in balances.
Overall, the data suggests that Binance users are confident in the platform’s legitimacy and future growth, despite regulatory scrutiny. This confidence is reflected in the increasing user funds and the choice of cryptocurrencies held on the platform.
