Key Points
Binance’s Big Moves
Binance has seen a significant increase in activity in its Ethereum (ETH) and Solana (SOL) holdings in the past 24 hours.
This information is according to data from Arkham Intelligence.
The largest crypto exchange by daily trading volume has sparked discussion in the crypto trading community.
This is due to major activity detected on Binance’s hot wallet.
Binance’s hot wallet off-loaded at least 103,570 SOL, equivalent to $16.32 million at current market prices.
In the past day, Solana has depreciated by nearly 8%.
SOL is now trading at $157.58, falling below $160 for the first time since October 2024.
There was a misconception that Binance was selling its holdings through market maker Wintermute.
However, an analyst clarified that Wintermute was actually withdrawing millions of Solana from Binance’s holdings.
Vini Barbosa, Editor for Finbold and AllianceDAO member, explained this in a recent post.
Binance has also reportedly traded around 25,000 ETH between 8:00 AM and 10:00 AM UTC.
The selling price at the time was approximately $3,200 per ETH.
This means Binance has traded away $80 million of its Ethereum holdings.
These token swaps were mainly addressed to Symbolic Capital Partners and Wintermute.
Shortly after, Ethereum’s price dropped by 3.5%.
At the time of writing, ETH has depreciated by nearly 4% and is trading at $2,683.
Another account, MartyParty, claimed that Binance was selling off TRUMP (TRUMP) tokens.
They alleged the exchange sold 4.7% of their $1 billion-valued TRUMP holdings.
However, it was later discovered that the exchange had not sold any TRUMP tokens.
Instead, the value of their holdings fell from $1 billion to around $850 million due to a drop in TRUMP price by more than 7%.
The Implications of Binance’s Actions
Binance’s token ‘sell-off’ may indicate that these tokens are in high demand.
Major market makers like Wintermute are withdrawing or staking tokens from Binance’s hot wallet.
This means they are either removing liquidity or buying SOL and ETH from the order books.
The fact that Binance is willing to part with these assets could mean the exchange is rebalancing its portfolio.
This implies that Binance is adjusting exposure to certain assets, reducing risks associated with volatile tokens.
It could also be preparing to reallocate their funds to more secure assets.
Investors and traders may interpret this move as an indication that Binance expects upcoming market turbulence.
This could influence liquidity and trading volumes for the mentioned tokens.
This action might help prevent potential price manipulation or sharp drops during high-pressure periods.
Removing millions in token value from Binance’s active trading environment can reduce liquidity.
This reduction might lead to a wider spread and more pronounced price swings on the platform.
This could affect overall market sentiment and potentially trigger further adjustments among other market participants.