After the Bybit hack, Binance saw a huge increase in net inflows, reaching $3.9 billion in just one week. This was a big jump compared to previous months.
The hack was the largest theft in crypto history, causing Bybit to drop from the second-largest exchange to the eleventh. As users left Bybit, Binance took advantage of the situation, bringing its total net inflows for February to $5.32 billion. In contrast, Bybit faced over 350,000 withdrawal requests and struggled to keep its users.
The hack, carried out by the Lazarus Group, stole $1.5 billion from Bybit. This incident led to a loss of trust among Bybit’s customers, while Binance gained confidence from users. The shift in user behavior shows that investors are looking for safer and more compliant platforms.
Binance’s strong market position and commitment to compliance have made it more appealing to users, further solidifying its status as the largest centralized exchange.
In the aftermath of the Bybit hack, Binance managed to handle the influx of new users smoothly. Bybit, on the other hand, was overwhelmed with withdrawal requests. Binance’s ability to navigate regulatory challenges and take proactive steps, like removing non-compliant stablecoins in Europe, shows its commitment to growth. Despite facing legal issues, Binance remains the top choice for many users.
The situation highlights a change in the exchange market, where trust and security are crucial for attracting users. As Bybit struggles, Binance’s increasing inflows reflect a growing reliance on platforms that prioritize compliance and security. Moving forward, Binance is likely to continue benefiting from these trends, reinforcing its position as the market leader in the crypto exchange space.
