Binance Records $1.2 Billion Net Inflow During Market Crash

Cryptocurrency exchange Binance significantly benefited from the market crash on August 5, recording a net inflow of $1.2 billion as investors responded to the sharp decline in cryptocurrency prices.

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Strong Investor Confidence

Binance CEO Richard Teng stated, “This is one of the highest net inflow days of 2024, indicating strong investor confidence,” in a post on X on August 6, citing data from DeFiLlama’s centralized exchange transparency dashboard.

There are typically three main types of inflows seen in cryptocurrency exchanges: trading activity, transfers from external wallets, and fiat deposits used to purchase crypto.

DeFiLlama’s CEX transparency dashboard shows that Binance’s net inflows increased by over $2.2 billion in the past 24 hours, reaching $101.2 billion.

Market Reactions and Volume

Other exchanges like ByBit, Crypto.com, and OKX also saw net inflow increases of $301.4 million, $107.8 million, and $97.7 million, respectively, in the past 24 hours. Meanwhile, Robinhood experienced a $16.9 million outflow as it suspended the 24-hour market execution platform Blue Ocean ATS early on August 6.

Blockchain analytics firm K33 Research noted that cryptocurrency exchanges processed 268,830 Bitcoin worth $15 billion in spot trading volume on August 5, marking the highest amount since Binance’s zero-fee regime in 2022-2023.

Market Resilience and Future Volatility

According to Binance Australia, despite the sharp decline, the fundamental value and potential of digital assets remain intact. Ben Rose, General Manager of Binance Australia and New Zealand, stated, “History shows that the cryptocurrency market demonstrates resilience and recovery following correction periods.”

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“Despite the current challenges, we do not view this downturn as a long-term negative trend for the crypto market,” he added. He also noted the potential for more significant market volatility in the near future, considering possible US Federal Reserve interest rate cuts and political uncertainties.

According to CoinGecko data, Bitcoin rose by 14% to $56,770 after hitting a low of $49,780 on August 5.

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