Crypto Crash Sparks Massive Inflows to Binance
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Following the sharp market downturn on August 5, 2024, Binance saw a remarkable influx of $1.2 billion, showcasing significant trader activity amid falling cryptocurrency prices.
CEO Richard Teng highlighted this as one of the year’s strongest days for net inflows, attributing it to investor confidence, based on DefiLlama’s data.
The main sources of these inflows were trading activity, wallet transfers, and fiat deposits for crypto purchases. DeFiLlama’s dashboard revealed that Binance’s net inflows grew by over $2.2 billion, totaling $101.2 billion within a day.
Other exchanges like Bybit, Crypto.com, and OKX also reported increased inflows of $301.4 million, $107.8 million, and $97.7 million, respectively. Conversely, Robinhood faced a $16.9 million outflow due to the suspension of its Blue Ocean ATS market.
K33 Research noted that exchanges handled over 268,830 Bitcoin, valued at around $15 billion, in spot trades on August 5, marking the highest volume since Binance’s fee-free period in 2022-2023.
During the crash, Bitcoin and Ether dropped by 10% and 18% respectively within two hours, leading to the liquidation of over $600 million in leveraged positions.
Despite the decline, Binance Australia emphasized the resilience of digital assets. General Manager Ben Rose pointed out that the market historically recovers from corrections and does not see this dip as a sign of long-term trouble. He anticipates more market volatility due to potential U.S. Federal Reserve interest rate changes and political uncertainties.
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