In 2024, cryptocurrency exchanges will see a significant shift as institutional investors enter the digital asset market. The world’s largest exchange, Binance, has dominated this surge, surpassing competitors like Kraken and Coinbase.
According to CryptoQuant data, average daily Bitcoin deposits on Binance surged by 2.77 BTC, outperforming Kraken and Coinbase, which experienced lower gains. Binance’s success comes as average Bitcoin deposits on exchanges have risen from 0.36 BTC in 2023 to 1.65 BTC in 2024. Similarly, Tether (USDT) deposits have risen considerably, from $19,600 to $230,000.
These trends suggest a shift away from retail trading, with large-scale institutional investors and market makers driving the rise. On November 3, Binance hit a new milestone with a daily Bitcoin deposit of 6.85 BTC, worth $465,000, a considerable rise above prior levels. The exchange also saw its daily USDT deposits reach $303,000, the highest since 2022.
The impressive performance of Binance extends beyond Bitcoin deposits. The exchange has also seen significant growth in USDT deposits, reinforcing its position as the preferred alternative for institutional investors. Binance’s CEO, Richard Teng, projected a 40% growth in corporate clients in 2024, echoing the broader trend of institutional investment in cryptocurrency.
Positive regulatory expectations are driving some of the increase in institutional engagement. The potential for clearer and more supportive regulations, particularly in the United States, has bolstered investor confidence. Former President Donald Trumpâ€TMs promises to create a U.S. Bitcoin reserve and reform the Securities and Exchange Commission (SEC) have further fueled optimism for crypto adoption.
Exchange-traded funds (ETFs), particularly spot Bitcoin ETFs, are also providing a new channel for institutional investors. These financial instruments enable traditional investors to obtain access to Bitcoin via regulated platforms, lending respectability to the cryptocurrency market. Companies like BlackRock, which now manage over $48 billion in Bitcoin assets, are leading the way, with the growing adoption of ETFs signaling a broader integration of digital assets into mainstream finance.
Binance and other exchanges will continue to benefit from increased liquidity and larger deposits as institutional interest rises.
