CEX Users Continue To Withdraw Massive Amounts of Ethereum Tokens and Assets

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There is a substantial focus on exchange proof of reserves these days. Several dashboards on Dune Analytics will help identify the platforms and their holdings. For Ethereum-based assets, there are substantial outflows for all stablecoins and ETH, whereas everything else remains in centralized wallets. 

Exchange Outflows on Ethereum

The dashboard, created by 21Shares, helps everyone identify how centralized exchanges conduct their proof of reserves. More specifically, it tracks the assets on Ethereum, which is often the biggest network for crypto assets besides Bitcoin. Moreover, most of the stablecoins reside on Ethereum, making it a valuable dashboard for digging up some interesting details. 

As one would expect, Binance has the highest proof of reserves on Ethereum, at nearly $37 billion. The runners-up are OKX ($4.1 billion), Bitfinex ($3.6 billion), and Crypto.com ($2.7 billion). Interestingly, Binance also notes a much higher outflow than inflow in recent days. That became more outspoken these past 24 hours, with $3 billion leaving the platform and $1.2 billion coming in. The other exchanges see a virtual equilibrium between deposits and withdrawals.

What is more interesting is which assets people are pulling off CEXes these days. Although this only represents Ethereum-based assets, it provides a solid indication. Again, USDT and BUSD lead the pack ahead of USDC. There’s also a healthy demand for moving ETH off exchanges and a minor amount of WBTC. Exciting developments as it makes one wonder where these stablecoins go. Due to their non-volatile nature, storing those in a self-custody wallet is worthwhile. 

An interesting trend becomes apparent with nearly $1 billion in USDT and $756 million in BUSD leaving proof of reserves. However, Binance maintains over $18.5 billion in BUSD reserves, compared to $2.11 billion in USDT. That Tether balance is lower than OKX ($2.487 billion) but much higher than Crypto.com ($26 million). That said, the latter platform is the “top dog” for USDC reserves on Ethereum, inching ahead of Binance. 

Stablecoins Remain Crucial

On the other side, stablecoins remain the primary deposit method on all exchanges. USDT and USDC are in the lead, ahead of ETH and BUSD. There is very little demand to deposit or withdraw DAI, APE, WBTC, or other Ethereum-based assets these days. That is interesting, although it further highlights the appeal of assets that do not suffer from market volatility. It will be interesting to see if ETH remains ahead of BUSD in the final weeks of 2022.  

It is safe to say stablecoins will gain more momentum in the coming weeks and months. Binance has over $20 billion in pegged assets on Ethereum alone. Interestingly, that does not include USDD, which recently expanded to Ethereum, and is used commonly on Bybit, Huobi, and Kucoin. Instead, Binance’s users seemingly favor sUSD, PAX, and TUSD. 

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