Binance Spot Share Falls to 42% as Exchange Reports $5.6B in Net Outflows

Binance’s spot share falls as exchange works through hack aftermath

Binance accounted for about 42% of spot trading on the top 10 cryptocurrency exchanges over the seven days covered by the reported data. That was its lowest weekly share in at least 12 weeks. The figure describes Binance’s portion of activity within that group, rather than the entire crypto market, and the source does not provide the underlying dollar volume for the period.

The decline followed a period when Binance’s share was substantially higher: it stood at around 48% before the previous week’s hack and roughly 51% in mid-August. Those comparisons show a marked change in its relative position, but the supplied figures do not establish that the theft alone caused the movement. They also do not identify how much of the change reflects activity shifting to rival exchanges.

OKX recorded the largest reported gain, rising to about 14% of spot trading from roughly 11% the week before, alongside higher spot volume. Coinbase edged up to 9.6% from about 9%, and Kraken also increased its share, though no figure was supplied for Kraken. The comparisons indicate that several rivals gained relative weight, not necessarily that Binance customers moved directly to them.

Trading share shifts across major exchanges

The market-share change came after attackers took $6.3 billion from Binance hot wallets on October 29. Binance responded by suspending withdrawals, according to the supplied account. A halt to withdrawals is directly relevant to users’ ability to move assets, while the incident also put the exchange’s security and recovery measures under scrutiny. The source does not describe the technical method used in the theft.

Attribution of the attack remains contested in the public statements described. The FBI blamed North Korea’s TraderTraitor group on October 31, and blockchain analytics firm Elliptic said its analysis supported that assessment. North Korea rejected the allegation on Tuesday. The supplied information reports these positions but does not provide independent evidence that resolves the disagreement or additional detail about the investigation.

Binance began reopening withdrawals in phases on November 1. On that day it put its assets at $171 billion, using its October 28 proof of reserves as the basis. A spokesperson later told Bloomberg that assets stood at $157 billion by Monday, using an internal estimate that factored in the hack, subsequent withdrawals and price movements. The two figures therefore reflect different dates and stated calculation bases.

The theft, attribution and withdrawal timeline

The exchange said net outflows reached $3.64 billion during the first nine and a half hours after withdrawals reopened. By the spokesperson’s account, cumulative net outflows since reopening had reached $5.6 billion, equal to about 3.5% of total assets. These are Binance’s reported figures; the source does not provide a separate calculation or a breakdown by asset, customer type or destination.

Binance offered a later, more immediate flow update on X on Tuesday, saying that by 03:00 UTC hourly deposits were exceeding withdrawals and that user activity was improving as flows stabilized. The exchange also reopened withdrawals for additional assets that day. The statement signals a change in the hourly balance it described, but does not show whether that pattern continued or how it affected cumulative outflows.

At a Hong Kong Fintech Week event on Tuesday, co-CEO Richard Teng said 95% of the affected tokens had been replenished. Binance’s additional reopening of withdrawals was another step in restoring access after the phased restart. The source does not identify which tokens made up the remaining portion, define the replenishment process, or give a timetable for any further recovery, leaving the status of those assets unclear.

Outflows, service updates and user protections

Alongside operational recovery, Binance’s VIP and institutional arm announced a VIP Level Protection Program on November 2. It runs from November 3 to December 2 and applies to eligible users at VIP levels 1 through 9, who are enrolled automatically. The program preserves a qualifying user’s highest VIP level reached during the specified October period, rather than requiring them to retain that level through current trading activity.

The protected level is the highest one each eligible user reached between October 21 and October 30, and Binance said it would not fall below that level during the program even if the user failed to meet the usual requirements. In practical terms, the measure temporarily cushions qualifying VIP users from a downgrade. The source does not state how many users qualify or quantify the program’s financial value to them.

Binance also began a separate community appreciation campaign on Monday. The supplied account says it includes rewards for eligible users who reach $10,000 in cumulative trading volume and yield products with annual rates as high as 10%. It provides no further campaign terms, duration or product details. These offers accompanied the recovery effort, but the available information does not show whether they changed trading activity or user flows.

Source: CryptoPotato