As a seasoned crypto investor who has witnessed the ebb and flow of this dynamic market since its inception, I can confidently say that the surge in institutional interest in 2024 is nothing short of revolutionary. The data shared by CryptoQuant paints a compelling picture of a maturing market, one that is gradually shedding its retail-dominated past to embrace the might of institutional capital.
In the year 2024, it seems that the cryptocurrency trading scene experienced a major change, primarily fueled by an increase in institutional involvement.
Based on information provided by CryptoQuant through its QuickTake platform, it appears that there has been extraordinary increase in Bitcoin and USDT deposits at significant cryptocurrency exchanges.
As a researcher examining market trends, I’ve noticed a significant shift in institutional investors’ growing trust towards digital assets. This development represents a notable breakaway from the conventional, retail-centric trading landscape we once knew.
The Institutional Interest Surge In Crypto
As an analyst, I’ve observed a significant rise in average Bitcoin deposits across exchanges. In 2023, these deposits were around 0.36 BTC, but this year, they have skyrocketed to 1.65 BTC. Furthermore, the amount of USDT deposits has experienced a staggering surge, climbing from $19.6k to an impressive $230k. This trend underscores the increasing participation of professional and corporate investors in the cryptocurrency market.
As reported by CryptoQuant, these large-scale deposits suggest growing curiosity towards digital currencies and an expanded acceptance among institutions as a reliable investment option within the financial sector.
It was disclosed that Binance is leading the pack when it comes to drawing institutional investments among cryptocurrency trading platforms, according to the data provided by their platform.
According to CryptoQuant’s data analysis, Binance saw a significant rise of approximately 2.77 Bitcoins per day in average deposits, significantly outpacing rivals such as Kraken and Coinbase, who reported daily Bitcoin deposit increases of 0.56 BTC and 0.41 BTC respectively.
This development follows the Binance CEO’s previous comment about increasing the platform’s institutional sector by 40%. In an interview with CNBC, Binance CEO Richard Teng mentioned this growth.
This year, there’s been a significant surge in institutional and corporate investors joining us. In fact, we’ve experienced a 40% rise in new onboardings from this group over the past year.
The growth of Binance is boosted by its involvement in US Dollar Tether (USDT) deposits. Both Binance and Bitfinex experienced significant increases in this area, as Binance’s average daily USDT deposit increased by approximately $94,000 and Bitfinex saw a rise of around $566,000, as reported by CryptoQuant.
Significantly, Binance’s USDT reserves have hit an unprecedented peak of $23 billion (ERC-20), emphasizing its stronghold over institutional liquidity. On November 3, 2024, Binance broke a record by depositing about 6.85 BTC daily (approximately $465,000), representing a staggering 14-times increase in dollar value compared to earlier periods.
More Room For Institutional Surge?
Although there’s been a notable surge in mainstream institutions showing an interest in the crypto market, it’s important to note that we may still be at the early stages, considering fewer than half of traditional large companies have entered the cryptocurrency sector yet.
Highlighting this, Binance CEO Teng said to CNBC:
Investment into cryptocurrency by institutions is barely scratching the surface. This trend is only starting out as many institutions are still conducting thorough research and assessments before fully committing.
It’s important to point out that the increasing attention from institutions towards digital currencies is generally a good sign. If this trend continues, it could lead to more investment and liquidity in the market. This increased investment might push up the prices of cryptocurrencies, particularly if large-scale purchases are made.
Featured image created with DALL-E, Chart from TradingView
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2024-12-04 09:15