Altcoins are leaving Binance as investors weigh trust against volatility

- Major Altcoins Being Withdrawn from Binance - Key Coins like ETH, ENJ, FET Being Withdrawn for Long-Term Holding [Unblock Media] May 2025 — Recently, large-scale withdrawals of specific altcoins from Binance have been taking place, prompting analysis regarding investor sentiment. According to the Binance Netflow Heatmap, a number of promising altcoins are rapidly being moved from the exchange to personal wallets. This is seen as more of a strategic move for long-term holding and on-chain utilization rather than just selling pressure. The altcoins with the highest withdrawal volumes in this analysis are as follows: $ENJ, $SLP, $FET, $AMP, $ETH, $CRV, $BNT, $1INCH, $GHST, $GTC, $YGG, $LINK, $ANKR, $ALICE, $MKR, $SNX, $ZRX, $DODO, $OGN. Most of these coins have been quickly withdrawn from Binance and are likely utilizing the decentralized ecosystem or being held for the long term. Particularly, Ethereum (ETH) has shown a consistent withdrawal trend despite recent volatility, drawing attention. The reduction in Binance's ETH holdings can act as short-term price pressure. Historical examples include: March 2023, a withdrawal of over 240k ETH from Coinbase leading to a 14% price increase within two weeks / January 2024, a 6.7% reduction in ETH holdings on Binance over five days resulting in a short-term rebound. These instances suggest that decreased ETH holdings on exchanges can lead to reduced supply pressure and potential price rebounds. One of the recently withdrawn coins, Enjin ($ENJ), saw a spike in on-chain transactions and withdrawals following the announcement of a Web3 gaming partnership with Immutable X and Square Enix in early May 2025. This indicates not just investor selling, but usage within the gaming ecosystem or for NFT issuance. Previously, asset withdrawals were often seen as a sign of trust and long-term holding intent in the asset. However, experts emphasize a more nuanced approach. For instance, recently Aptos (APT) witnessed a large withdrawal after a 28% rise over two weeks, likely aiming for short-term profit realization. Moreover, shifts from BTC or ETH to emerging altcoins, or liquidity transitions to NFT/DeFi ecosystems, may also reflect in withdrawal data. The Binance Netflow Heatmap serves as a robust analytical tool, extending beyond mere exchange metrics to gauge investors' trust, utilization, and strategic movement paths. Altcoins currently leading in withdrawals, including ETH, appear motivated by factors beyond mere selling: long-term holding, actual usage, strategic rebalancing, and more. Investors withdrawing certain coins from exchanges might actually signal a positive market assessment of those assets.