On August 5, cryptocurrency exchange Binance saw a net inflow of $1.2 billion, marking one of the most active trading days of 2024. This surge came as traders reacted to a sharp decline in cryptocurrency prices. Binance’s CEO, Richard Teng, highlighted the event in an August 6 post on X, attributing the data to DeFiLlama’s centralized exchange transparency dashboard. He emphasized that the substantial inflows reflected strong investor confidence despite the market downturn.
Inflow Breakdown
The cryptocurrency market often sees three main types of inflows: trading activity, transfers from external wallets, and fiat deposits used to purchase crypto. According to DeFiLlama, Binance’s net inflows reached $101.2 billion, a $2.2 billion increase over the previous 24 hours.
Other major exchanges also saw notable inflows:
- ByBit: $301.4 million
- Crypto.com: $107.8 million
- OKX: $97.7 million
In contrast, Robinhood experienced a $16.9 million outflow due to the suspension of its 24-hour market execution venue, Blue Ocean ATS, early on August 6.
Also Read: Binance Challenges $86M Indian Tax Showcause Notice
Market Activity and Reactions
According to K33 Research, cryptocurrency exchanges processed over 268,830 Bitcoin—equivalent to $15 billion—in spot trading volume on August 5. This volume was the highest since Binance’s zero-fee trading regime in 2022-2023. The market turbulence led to a 10% drop in Bitcoin and an 18% decline in Ether within a two-hour window. Over $600 million in leveraged long positions were liquidated during this period.
Despite the sharp decline, Binance Australia remains optimistic about the market’s future. Ben Rose, General Manager of Binance Australia and New Zealand, stated, “History shows that the cryptocurrency market has demonstrated resilience and recovery following periods of correction.” Rose also suggested that future market fluctuations could be influenced by potential U.S. Federal Reserve interest rate cuts and political uncertainties.
Bitcoin has since partially recovered, climbing 14% from its August 5 low of $49,780 to $56,770, according to CoinGecko.
