Binance CEO Changpeng Zhao has revealed in an interview with Bloomberg Surveillance that the user base of Binance is growing rapidly. According to him, more institutional investors are now beginning to use the leading crypto exchange for their trading, investments and other financial related services.
CZ went on to state that the exchange had always experienced growth in its user base, but in the past months, there have been much higher institutional investors trading with the exchange.
Institutional Investors Have a Strange Trading Pattern
The Binance CEO also mentioned that the institutional investors, like corporate treasuries, have a strange trading pattern on the exchange. According to him, they usually tend to invest in large sizes and
According to CZ, these institutions trade in this pattern:
Those guys have a very unique buying pattern … they just buy, they don’t sell. And they buy, they withdraw. They buy, they withdraw.
Changpeng went on to reveal that the trading pattern adopted by the new investors is very new to the exchange. He added that this trading pattern was started by Michael Saylor led Microstrategy which is one of the highest hodlers of Bitcoin among institutional investors.
The Average User Balance is low on Binance
CZ also highlighted the obvious fact most institutional investors had larger account sizes than the average user. He stated that “users have much lower balances. Based on this, he deduced that the average is probably not very high.”
He went on to note that the exchange also services users across the world with accounts that hold as low as $50. This he believes contributes to lessening the overall average. However, the large volume of trades on Binance in recent times are being moved by large scale investors.
Interestingly, BNB, the native token of the exchange, enjoyed tremendous growth in February. The asset rose to an all-time high of $368 but its value has since corrected to around $240.