The cryptocurrency exchange market appears to have undergone a transformative shift in 2024, driven largely by a significant rebound in institutional activity.
According perspectives Shared by CryptoQuant on its QuickTake platform, major exchanges are witnessing unprecedented growth in Bitcoin and USDT deposits.
This trend highlights institutional investors’ growing confidence in digital assets, marking a shift away from the trading space traditionally dominated by retail.
The rise of institutional interest in cryptocurrencies
Key metrics reveal that average Bitcoin deposits on exchanges have skyrocketed from 0.36 BTC in 2023 to 1.65 BTC this year. Similarly, USDT deposits have increased sharply from $19.6k to $230k, reflecting the growing participation of professional and corporate investors.
According to CryptoQuant, these significant inflows mean increased interest in digital currencies and broader institutional adoption as a viable financial instrument.
The on-chain data provider platform also revealed that Binance has become the leader in attracting institutional funds among cryptocurrency exchanges.
Data from CryptoQuant highlights a 2.77 BTC increase in Binance’s average daily Bitcoin deposits, far outpacing competitors like Kraken and Coinbase, which reported increases of 0.56 BTC and 0.41 BTC, respectively.
This aligns with the Binance CEO’s previous statement about a 40% expansion in the platform’s institutional business. in a interview Speaking to CNBC, Binance CEO Richard Teng noted:
So we, for our part, are seeing a big rebound in terms of institutional and corporate investors. We’ve seen a 40% increase in onboarding in that category over the course of this year alone.
Binance’s performance is further boosted by its USDT deposit activity. The exchange and Bitfinex posted substantial gains in this category, with Binance’s average daily USDT deposit increasing by $94k and Bitfinex by $566k, according to data shared by CryptoQuant.
Notably, Binance’s total USDT reserves have reached an all-time high of $23 billion (ERC-20), underscoring its dominance in institutional liquidity. On November 3, 2024, Binance set a record with an average daily Bitcoin deposit of 6.85 BTC (approximately $465,000), representing a 14x growth in dollar terms from previous levels.
More room for institutional rise?
Despite this significant rise in institutional interest in the broader crypto market, it could be just the beginning, especially considering that not even 50% of the major traditional companies have ventured into the cryptocurrency market.
Highlighting this, Binance CEO Teng told CNBC:
Cryptocurrency allocation by institutions is just the tip of the iceberg. This is just beginning, because many of them are still doing their due diligence.
It is worth noting that the implications of the continued rise of institutional interest in digital currency are very positive. Continuing this trend means more entry and liquidity into the market, which could boost cryptocurrency prices, given that several important purchases would be done.
Featured image created with DALL-E, TradingView chart
