Wed 04 Dec 2024 ▪
5
min read ▪ by
In 2024, the crypto market reaches a key milestone in its development with an unprecedented increase in institutional capital invested. This phenomenon reflects a profound shift in financial dynamics, driven by a growing adoption of crypto within traditional investment portfolios. At the heart of this transformation, Binance stands out by consolidating its position as a global leader among exchange platforms. The staggering growth of average bitcoin deposits on this platform surpasses that of its main competitors, confirming its crucial role.
A dominance confirmed by the numbers
Binance has reinforced its leadership position in 2024 among exchange platforms thanks to a notable increase in average daily bitcoin deposits. According to CryptoQuant’s analysis, the daily average reached 2.77 BTC, significantly higher than that of its main competitors, Kraken (0.56 BTC) and Coinbase (0.41 BTC). This significant differential illustrates the growing appeal of Binance among large investors, whether institutional or professional.
On November 3, the platform recorded a record with a daily deposit of 6.85 BTC, equivalent to 465,000 dollars. This exceptional performance reflects Binance’s efficiency in managing liquidity, as well as the confidence that its security mechanisms inspire in users.
More broadly, data shows a widespread increase in average deposits on exchange platforms, which rose from 0.36 BTC in 2023 to 1.65 BTC in 2024. This trend underscores the growing interest of institutional investors in the crypto market, attracted by increased return opportunities and constantly improving liquidity. The rise of deposits in stablecoins, such as USDt, also confirms this dynamic, with an increase in average deposits from 19,600 dollars in 2023 to 230,000 dollars in 2024.
The rise of institutional investors
This trend is partly explained by a political and economic context that has proven particularly favorable to crypto. The re-election of Donald Trump in the United States played a key role, mainly due to his promises of more transparent regulations and a pro-crypto legislative environment. His statements, which include the idea of constituting a strategic reserve in bitcoin for the country, have sparked a renewed confidence among investors.
At the same time, the introduction and democratization of financial products such as Bitcoin ETFs have facilitated institutional investors’ access to this market. In November, these funds held assets of over 30 billion dollars, of which 6.87 billion were injected in the last month alone. These figures illustrate the scale of institutional adoption and the growing role of crypto in large-scale financial strategies.
Among the most influential players, BlackRock stands out with its iShares Bitcoin Trust, which currently holds 500,380 BTC, or approximately 2.3 % of the total bitcoins in circulation. This substantial control reflects the strategic interest of large financial institutions in crypto. This enthusiasm marks a historic turning point, where cryptos are no longer viewed solely as a speculative asset but as an essential component of traditional investment portfolios. The evolution of these trends could permanently transform the global economic landscape.
The growth of deposits on Binance, fueled by a favorable political environment and financial innovations like Bitcoin ETFs, reflects a profound transformation of the crypto market. This development redefines sector dynamics through the consolidation of Binance’s position as a leader and the strengthening of the appeal of crypto among institutional investors. However, this concentration of capital on a limited number of platforms raises questions. It reveals major challenges, particularly in terms of regulation and governance. As regulators’ expectations intensify, platforms will need to demonstrate their ability to meet stricter standards of transparency and security. Additionally, they will need to respond to the growing demands of investors seeking stability and liquidity.
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Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
