• Binance records $1.65B in stablecoin deposits, signaling fresh liquidity inflows.
• Nearly $1B worth of Ethereum was withdrawn from Binance in two days, reducing exchange supply.
• Ethereum futures on CME show rising open interest, outperforming Bitcoin in institutional demand.

CryptoQuant data shows Binance has recorded more than $1.65 billion in stablecoin deposits in recent days. This marks the second time this month that inflows have crossed the $1.5 billion threshold. Such large movements highlight renewed capital entering the spot market, often seen as a signal of fresh liquidity ready for deployment.

Binance remains the favorite destination for such inflows as it retains its depth of liquidity and competitive pricing. Its ease of access from anywhere in the world and robust infrastructural support also appeal to institutions. The site sees use from funds and traders for position-taking ahead of expected price action, and deposit volumes solidify Binance as the leader for managing strategic accumulation phases.

Inflows of stablecoin deposits also mean there are investors building up funds for rotating their assets into digital currencies as market expectations turn bullish. As liquidity builds up on Binance, attention focuses on how the funds can transfer into leading tokens such as Ethereum and Bitcoin.

Ethereum Withdrawals Near $1 Billion

While stablecoins are coming to Binance, Ethereum is exiting. During the interval of August 24-25, nearly 208,000 ETH exited the exchange, which aggregated around $1 billion.

CryptoQuant notices that large withdrawals will generally reflect movements into cold wallets, which better indicates long-term holding as compared to short-term speculation. This kind of activity reduces Ethereum’s current exchange supply.

This has been historically linked with bullish price behavior due to the fact that lower reserves mean lower risk of strong selling pressure. Investors appear to transfer ETH into private custody when market demand for the asset grows.

That these withdrawals are occurring now indicates increasing faith in the future performance of Ethereum. As there are fewer tokens on exchanges immediately available for sale, there will be a greater likelihood of stronger upward momentum if demand increases further.

Also Read: Ethereum Whales Accumulate Big as Market Eyes $5,000 Breakout

Ethereum Outperforms Bitcoin on CME

CryptoQuant further indicates that Ethereum is ahead of Bitcoin in institutional markets. Ethereum futures contracts’ open interest has jumped sharply on the Chicago Mercantile Exchange.

This contrasts with Bitcoin, which did not break previous highs as prices rose due to the lack of recovery of open interest. Ethereum’s current break higher through $4,000 now benefits from growing liquidity and institutional support, contrary to earlier attempts.

Hedge funds and large speculators are building positions, and retail participation is low, so the rally isn’t overheated. Since ETH is showing resilience relative to Bitcoin, momentum will continue as retail demand enters slowly.

Also Read: Ethereum Surges as Bitmine Invests $439M, Aims $6,400 in Next Rally