On August 6th, the net inflow of stablecoins to exchanges soared to nearly $1 billion, marking the highest level since April 2023.
This surge comes on the heels of the market downturn on August 5th, which appears to have triggered a wave of buying activity, with both retail investors and institutions seizing the opportunity to buy the dip.
Yesterday, the net inflow of stablecoins to exchanges reached nearly $1 billion, the highest since April 2023. pic.twitter.com/8CRzyWtl8i
— IntoTheBlock (@intotheblock) August 7, 2024
Binance has been a major beneficiary of this inflow, with a staggering net inflow of $2.4 billion since the market drop. This includes $1.33 billion in USDT and $519 million in USDC, signaling a strong vote of confidence from investors who believe in a market rebound. The large inflows suggest that many are taking advantage of lower prices, positioning themselves for potential gains as the market stabilizes.
Since the market drop on August 5, #Binance has experienced a net inflow of $2.4B.
This includes a net inflow of $1.33B in $USDT and $519M in $USDC.
Some investors appear confident in the market and are buying the dip. pic.twitter.com/hBKmXDKSEa
— Lookonchain (@lookonchain) August 8, 2024
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Institutions are also joining the buying frenzy. In less than two days, Cumberland, a prominent crypto trading firm, received $372 million in USDT from Tether Treasury. Cumberland then swiftly transferred these funds to major exchanges, including Coinbase, Kraken, OKX, Binance, and Forwarder. This rapid movement of funds highlights the institutional appetite for digital assets, even in a volatile market environment.
Institutions are buying the dip!
In less than 2 days, #Cumberland received 372M $USDT from #TetherTreasury and transferred it to #Coinbase, #Kraken, #OKX, #Binance and #Forwarder.https://t.co/yYuVGPsQjXhttps://t.co/1gyDg1hMJn pic.twitter.com/mH55k0x6PG
— Lookonchain (@lookonchain) August 8, 2024
The influx of stablecoins is a clear indication that both individual and institutional investors are preparing to re-enter the market, possibly anticipating a rebound. As the market dynamics continue to evolve, the substantial inflows of stablecoins could provide the liquidity needed to support a recovery in cryptocurrency prices. Whether this wave of buying will lead to a sustained market recovery remains to be seen, but the current activity suggests that confidence in the market’s long-term potential is far from shaken.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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