Binance $1.2 B outflows as ETH withdrawals hit 3-year high

The world's largest cryptocurrency exchange, Binance, recorded a sharp increase in net outflows last week alongside a multi-year high in Ethereum withdrawal transactions, as analysts point to shifting market dynamics and regulatory developments in Europe. According to data from DefiLlama, Binance saw $1.23 billion in net outflows during the week beginning June 29, a 207% increase from roughly $400 million the week prior. Separately, blockchain analytics firm CryptoQuant reported that on July 1, Binance processed over 166,000 Ethereum withdrawal transactions, the highest single-day count in more than three years.

The surge in Ethereum activity coincided with a price rebound for the asset, which rose about 10% over a two-day period to trade near $1,700. Analysts at CryptoQuant suggested the withdrawals could reflect genuine demand building around the $1,500 level, with investors moving funds off the exchange for longer-term accumulation rather than short-term trading. Other possible drivers include funds migrating into decentralized finance (DeFi) protocols for yield and user anxiety related to new European Union regulations.

The Markets in Crypto-Assets (MiCA) framework, certain...