In a surprising turn of events, according to Defillama, after the Bybit hack, Binance saw net inflows of $3.971 billion between February 21 and February 27, 2025.
This surge of capital suggests that, following the Bybit security breach, a large number of investors looked to Binance as a shelter.
Binance Emerges as Fund Safe Haven
Binance, one of the biggest cryptocurrency exchanges globally, has made a name for itself as a top platform for institutional and individual investors, particularly in uncertain times.
Many users were probably alarmed by the Bybit attack, which exposed a sizable sum of money, and moved their assets to Binance, which is renowned for its strong security.
As traders look for safe platforms to protect their money, this tendency of moving assets to reliable exchanges like Binance has been seen during prior thefts.
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Binance Inflows See Steady Rise Amid Rise in Market Confidence
Binance has reported $5.323 billion in net inflows in February. In six of the previous 12 months, Binance saw net inflows of above $3 billion, peaking at $9.2946 billion in November 2024.
Conversely, inflows into other exchanges, like as Coinbase and Kraken, have not been as significant.
Both platforms have continued to develop steadily, notably in terms of institutional investments, but they haven’t seen the same spike in capital, particularly during periods of market volatility.
When compared to its rivals, Binance continues to get large inflows due to its reputation for security, reduced costs, and broad range of offerings.
Coinbase and Kraken, on the other hand, have had difficulty breaking the $2 billion mark. This demonstrates Binance’s dominant position in the cryptocurrency market, which is fueled by its worldwide reach, liquidity, and security features.
Additionally, earlier times in 2023, when Binance’s monthly inflows were more erratic and averaged between $1 billion and $2 billion per month, stand in stark contrast to this growth.
Why is Binance Gaining Market Traction?
Strong security protocols, a sizable liquidity pool, and regulatory compliance initiatives are all contributing to Binance’s growing investor trust.
In times of market turbulence, particularly following high-profile thefts, Binance has emerged as a preferred platform due to its reputation for safe transactions and effective customer service.
Traders have been drawn to the exchange by its ongoing innovation, which includes providing a wide variety of assets, staking choices, and low costs.
Its legitimacy is further enhanced by Binance’s dedication to following laws in several jurisdictions, as evidenced by its recent collaboration with financial institutions. Because of these elements, Binance is a reliable exchange for both individual and institutional investors.
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