CryptoQuant, a cryptoasset analytics platform, has issued a report showing that the total amount held by major cryptocurrency exchange Binance in Bitcoin reserves has seen an “unexpected” decline over the last two months.
According to the report, the Bitcoin balance held by Binance has dropped from 502,000 BTC at the start of March to 470,000 BTC, as of April 30. This is an overall decline of 6.3%.
The report attributed the drop to a growing demand for Bitcoin among retail customers, which is leading to a shift away from Binance. CryptoQuant notes that this shift has resulted in an increase in the balance of Bitcoin held by Coinbase. This shift is also echoed in the increase in the number of Coinbase users.
CryptoQuant believes that the recent bull market has encouraged more retail investors to enter the crypto space, with Coinbase being the primary destination. The platform further noted that Bitcoin’s excellent returns over the recent months have resulted in a large number of speculative buyers, who tend to buy and hold Bitcoin rather than trade it.
The report concluded by noting that although the total Bitcoin balance held by Coinbase is still far lower compared to Binance, the company’s considerable growth over the past few months indicates that Coinbase may surpass Binance and become the world’s largest crypto exchange in the near future.