Binance Leads $21.75B Exchange Outflow in One Week

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  Binance saw the largest outflow of $21.75B in 7 days.
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  Total outflows from centralized exchanges are surging.
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  Investors may be moving assets to self-custody or DeFi.

Centralized crypto exchanges (CEXs) are experiencing a major outflow of assets. In the past week alone, Binance, the world’s largest exchange, witnessed a massive withdrawal of $21.75 billion, according to data from CoinGlass. This trend reflects a growing shift among crypto investors, raising questions about market sentiment and trust in centralized platforms.

Other major exchanges also saw sizeable withdrawals, though Binance’s outflow was by far the highest. This could be linked to regulatory concerns, increased awareness of self-custody, or a wider shift toward decentralized finance (DeFi).

What This Means for Binance and the Market

Binance’s $21.75B outflow in just seven days is significant, especially as it makes up the largest chunk of the total CEX outflows during this period. It may indicate that users are losing confidence in keeping their funds on centralized platforms, possibly driven by regulatory crackdowns, exchange outages, or fear of mismanagement.

Another angle is market conditions. With rising market volatility, users often transfer assets to personal wallets or decentralized platforms to retain full control. This move can also reduce the risk of losing access during platform downtimes.

However, it’s not all negative. Large outflows can also reflect strategic moves by institutional investors, shifting capital into long-term holdings or staking mechanisms.

The Bigger Picture: Shift Toward Self-Custody?

The trend shows that more investors are taking control of their digital assets. Following past events like FTX’s collapse, trust in centralized exchanges has taken a hit. As a result, more users are turning to hardware wallets or decentralized protocols that let them maintain full ownership of their crypto.

If this pattern continues, it could push exchanges like Binance to improve transparency, increase proof-of-reserve reporting, and offer more secure services to regain user trust.