Here’s what on-chain data says regarding which cryptocurrency exchanges are currently the popular platform for the Bitcoin whales.
Bitcoin Exchanges Ranked According To Whale Ratios
In a recent post on X, CryptoQuant community manager Maartunn discussed which exchange is currently primary within the Bitcoin Exchange Whale Ratio.
The “Exchange Whale Ratio” here refers to an indicator that keeps track of the ratio between the sum of the highest 10 exchange inflows and the entire exchange inflow for a given platform.
The ten largest inflows to an exchange are generally considered to be coming from the whale entities, so this metric’s value tells us about what a part of the entire platform inflows these humongous investors are making up for.
Now, here is the chart shared by Maartunn that shows how the Bitcoin Exchange Whale Ratio has modified for the varied exchanges within the sector over the past decade:
Looks like Coinbase currently has this metric at the best value | Source: @JA_Maartun on X
Within the graph, a blue shade corresponds to Bitcoin Exchange Whale Ratio values near 0, a red one to those around 0.5 and a yellow one to those near 1. It will appear that while a lot of the exchanges have a shade of blue, Coinbase stands out for having a consistent yellow streak for some time now.
This implies that the whales make just about all the BTC inflows going to Coinbase. In contrast, the opposite exchanges have seen a dominance of retail exchange inflows, including Binance, the most important cryptocurrency platform by way of trading volume.
The chart shows that while Coinbase has been dominating by way of whale activity this 12 months, it wasn’t at all times the case. The platform’s growth because the home to the whales will be connected to 1 event: the launch of the spot exchange-traded funds (ETFs).
The spot ETFs finally gained approval from the US Securities & Exchange Commission (SEC) initially of this 12 months. Since then, these recent financial instruments have garnered popularity amongst investors.
A spot ETF allows investors to achieve indirect exposure to BTC’s price movements, which implies they don’t must own any real BTC tokens; the spot ETFs purchase and hold coins on behalf of their users as a substitute.
Now, the spot ETFs must securely store this BTC in some way, and for this purpose, most of them have chosen Coinbase because the custodian. This unique position that the platform has acquired within the sector could explain why the platform’s inflows have been so whale-heavy this 12 months.
BTC Price
Bitcoin had seen a pullback below the $67,000 level earlier within the day, however it appears that the asset has recovered as its price is now trading around $67,200.
The worth of the coin seems to have been having fun with bullish momentum recently | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com