Institutions create major trading volumes on Binance

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The client base of the cryptocurrency exchange is growing rapidly, mainly for institutional investors. This was announced by the head of the company Changpeng Zhao (CZ) in an interview with Bloomberg Surveillance.

CZ stressed that the main increase occurred over the past year. He also stressed that the influx of institutional investors has sharply increased over the past few months.

Changing trading patterns

CZ noted that institutional investors typically trade large volumes on Binance. In particular, he highlighted corporate accounts among new users.

 

“These investors have a very unique buying model,” he added.

 

They buy over a long period, usually weeks or months. And besides, they just buy, but do not sell coins, but withdraw them to cold wallets.

According to him, he has never seen such behaviors on Binance before. This trend was most likely initiated by the head of MicroStrategy, Michael Sailor. Since August 2020, MicroStrategy has been aggressively buying Bitcoin (BTC). Most recently, she bought another 383 coins for $ 15 million. In total, the company now has 90 859 BTC on its balance sheet.

Average Binance Account Size

The head of Binance admitted that he could not say for sure how the average account sizes on the exchange have changed.

 

“We’re not really tracking these statistics,” he said.

 

He also added that new institutional investors tend to have large portfolios, but the average retail trader’s balances are much lower. Based on this, he came to the conclusion that the average invoice amount is small.

 

“We serve users from all over the world, including poor regions,” Zhao added. “We have accounts for $ 100, $ 50, and for many, that’s a lot of money.”

 

Changpeng Zhao also noted that many small investors are driving down the average. However, it is the large investors who make the main trading volume on the exchange.

BNB strengthens its position

The exchange’s own token, Binance Coin (BNB), has risen in price more than eight times over the past month. The price increased by 729%, from $ 44.37 on February 1st to $ 368 on February 19th. Despite the correction to $ 240, the growing demand for the coin will help it gain a foothold in the uptrend.

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