According to a firm that explores the intricacies of the crypto market, Delphi Digital, the leading crypto exchange Binance saw over $5 billion in net withdrawals between December 13th and 14th. The reason for this mass outflow is still unclear, although it could be linked to the lesser trust in exchanges that has begun swarming the market since the collapse of giant FTX in early November, but it is likely more linked to the fact that the FUD around Binance (relative to the proof of reserve) has recently increased a lot of fears among investors.

In addition, as suggested by Coin98 Analytics, the BNB Chain reported the highest number of daily active users ever on the blockchain during the same period with roughly 1.1 million users, with Ethereum’s 402,000 user record now lagging far behind. This BNB spike has also fueled a short-term growth in the NFT market, whose volume has seen an upward trend in the last month.

Any other exchange would have likely seen massive issues following a withdrawal of that volume; however, Binance CEO Changpeng Zhao has maintained that all assets on the exchange are one-to-one backed, stating that “People can withdraw 100% of the assets they have on Binance. We will not have an issue on any given day. So 100% of users withdraw 100% of assets, we’d be fine.”