Metric loss

Binance now overtakes Coinbase in key Bitcoin metric, what does this mean

After receiving a downgraded rating from Goldman Sachs last month, Coinbase continues to grab headlines for the wrong reasons. The prevailing market conditions had a huge negative impact on Coinbase, which also announced job cuts. More recently, the major exchange reportedly ended its affiliate marketing program in the United States.

Coinbase is no longer the leader in Bitcoin?

In a final, on-chain data from Glassnode indicates that Coinbase recently lost its pole position as the largest exchange with Bitcoin holdings. According to data shared by Will Clemente, a crypto analyst, there has been a decline in bitcoin holdings with Coinbase. On the other side there was a the rise of BTC storage with Binanceanother top crypto exchange.

According to the chart shown by Clemente, a reversal in Bitcoin holdings has occurred around the 600K BTC mark. He tweeted,

“The Turnaround: Binance Passed Coinbase to Have the Most BTC of Any Exchange.”

Exchange fund data, the reality

However, it is unclear if this data includes all untagged addresses of the two crypto exchanges. Coinbase employee Nick de Bontin dismissed the Glassnode data findings. He said the shared data is an irrelevant metric given that exchanges store assets in various other modes. A large majority of exchange funds are in cold storage and unlabeled addresses, he added.

Several people in the crypto community have been talking about the stability of Coinbase lately. Last week, crypto influencer Ben Armstrong indicated that the Coinbase story was not projecting good signs. Recent history suggests the crypto exchange could face insolvency, he said. The exchange, however, has lately been unprotective of his current status. Coinbase reported that its first financial quarter results are directly impacted by the current market volatility. The company reported a loss of $430 million in the first quarter.

Anvesh reports major developments regarding crypto adoption and price analysis. Associated with the industry since 2016, Anvesh is a strong advocate for decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and contact him at [email protected]

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.