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.
Jefferies chief market strategist David Zervos believes an upcoming power shift at the Federal Reserve could benefit U.S. equity markets.
Anchorage Digital, a federally chartered crypto custody bank, is urging its institutional clients to move away from major stablecoins like USDC, Agora USD (AUSD), and Usual USD (USD0), recommending instead a shift to the Global Dollar (USDG) — a stablecoin issued by Paxos and backed by a consortium that includes Anchorage itself.
Ethereum co-founder Vitalik Buterin has voiced concerns over the rise of zero-knowledge (ZK) digital identity projects, specifically warning that systems like World — formerly Worldcoin and backed by OpenAI’s Sam Altman — could undermine pseudonymity in the digital world.
A new report by the European Central Bank (ECB) reveals that digital payment methods continue to gain ground across the euro area, though cash remains a vital part of the consumer payment landscape — particularly for small-value transactions and person-to-person (P2P) payments.