Cryptocurrency exchange Binance benefited massively from the Aug. 5 market crash — recording $1.2 billion in net inflows as traders responded to a sharp fall in cryptocurrency prices.
“This marks one of the highest net inflow days of 2024, indicating strong investor confidence,” Binance’s CEO Richard Teng said in an Aug. 6 X post — citing data from DeFiLlama’s centralized exchange transparency dashboard.
The three main kinds of inflows typically seen on cryptocurrency exchanges are trading activity, transfers from external wallets and fiat deposits used to buy up crypto.
DeFiLlama’s CEX transparency dashboard now shows Binance net inflows increased more than $2.2 billion over the last 24 hours to $101.2 billion.
ByBit, Crypto.com and OKX’s inflows have also increased by $301.4 million, $107.8 million and $97.7 million over the last 24 hours.
Robinhood notably saw a $16.9 million outflow as it suspended its 24-hour market’s execution venue, Blue Ocean ATS in the early hours of Aug. 6.
Cryptocurrency exchanges processed more than 268,830 Bitcoin (BTC) — worth $15 billion — in spot trading volume on Aug. 5, blockchain analytics firm K33 Research noted.
“[This was] the highest amount since Binance’s zero fee regime in 2022-2023."
Meanwhile, Bitcoin and Ether (ETH) tanked 10% and 18% in a short two-hour window on Aug. 5, while over $600 million in leveraged long positions were wiped out.
Related: India demands $86M from Binance in unpaid GST taxes
Despite the sharp fall, the fundamental value and potential of digital assets remains intact, Binance Australia said in a statement shared with Cointelegraph.
“History shows that the cryptocurrency market has demonstrated resilience and recovery following periods of correction,” said Binance Australia and New Zealand’s General Manager, Be Rose.
“Despite the current challenges, we do not view this downturn as indicative of a long-term negative trend for the crypto market.”
Rose expects to see more significant market fluctuations in the near future, citing potential United States Federal Reserve interest rate cuts and political uncertainties.
Bitcoin has partially recovered since bottoming out at $49,780 on Aug. 5, up 14% to $56,770, CoinGecko data shows.
Magazine: Deposit risk: What do crypto exchanges really do with your money?
