Emily Walker
In 2024, the cryptocurrency exchange landscape has seen major changes, predominantly influenced by rising institutional participation.
Insights from CryptoQuant’s QuickTake highlight a remarkable increase in Bitcoin and USDT deposits across leading exchanges.
This rise indicates growing trust among institutional investors in digital assets, signaling a shift from the traditionally retail-focused trading environment.
Rising Institutional Interest in Cryptocurrency
The data reveals a sharp increase in average Bitcoin deposits on exchanges, rising from 0.36 BTC in 2023 to 1.65 BTC in 2024. USDT deposits also surged from $19.6k to $230k, showcasing heightened participation from institutional and corporate investors.
CryptoQuant attributes these inflow levels to an increased institutional interest in cryptocurrencies as legitimate financial assets.
Furthermore, Binance has positioned itself as the leading exchange for attracting institutional investments, as revealed by the on-chain data.
Binance noted an impressive increase of 2.77 BTC in its average daily Bitcoin deposits, significantly more than competitors such as Kraken and Coinbase, which recorded 0.56 BTC and 0.41 BTC increases respectively.
This aligns with a statement from Binance’s CEO, who noted a 40% growth in the company’s institutional sector during an interview with CNBC. Richard Teng stated:
We are experiencing a significant rise in institutional and corporate investors, with a 40% increase in onboarding for this category this year.
Binance has also excelled with USDT deposits, with average daily USDT deposits increasing by $94k at Binance and $566k at Bitfinex, as reported by CryptoQuant.
Notably, Binance’s USDT reserves have reached a record high of $23 billion (ERC-20), reinforcing its position in the institutional liquidity space. On November 3, 2024, Binance reported a daily average Bitcoin deposit of 6.85 BTC (around $465,000), reflecting a 14-fold increase in dollar terms compared to earlier figures.
Potential for Further Institutional Growth
Despite the remarkable rise in institutional engagement, this might only mark the beginning, especially since less than 50% of major traditional firms have entered the cryptocurrency domain.
Binance’s CEO Teng further emphasized to CNBC:
Institutional investment in crypto is merely scratching the surface, and many are still conducting thorough evaluations.
This ongoing influx of institutional interest holds promising implications. Sustaining this momentum could lead to increased liquidity and inflow into the market, potentially driving up cryptocurrency values as substantial acquisitions occur.
Featured image created with DALL-E, Chart from TradingView