On August 5, 2024, Binance Exchange experienced a major increase in funds during a market drop, gaining $1.2 billion.
This was one of the largest trading days of the year, reflecting continued confidence from many people trading on the platform, according to Binance CEO Richard Teng. He shared this information on August 6, using data from DeFiLlama’s exchange transparency dashboard.
See Also: Charges Against Binance Exchange Executives Dropped
What Caused The Binance Exchange Inflows?
The rise in inflows at Binance Exchange was mostly due to more trading, transfers from other wallets, and cash deposits used to purchase cryptocurrencies. In the past 24 hours, Binance’s net inflows grew by more than $2.2 billion, bringing the total to $101.2 billion.
Other crypto exchanges also saw large increases. ByBit, Crypto.com, and OKX gained $301.4 million, $107.8 million, and $97.7 million in the same 24 hours. Meanwhile, Robinhood saw a $16.9 million decrease after pausing its 24-hour trading platform, Blue Ocean ATS, early on August 6.
On August 5, crypto exchanges handled over 268,830 Bitcoin in spot trading, worth $15 billion. This was the highest amount since Binance’s no-fee trading period in 2022-2023, noted blockchain analytics firm K33 Research. The market took a sharp hit, with Bitcoin and Ether dropping 10% and 18% in just two hours. During this time, over $600 million in leveraged long positions were wiped out.
Despite this drop, Binance Australia emphasized that crypto assets still have value and potential. Ben Rose, General Manager of Binance Australia and New Zealand, pointed out that the crypto market has bounced back from corrections before.
He also mentioned that they do not see this downturn as a sign of a long-term problem for the market. Rose expects more ups and downs in the near term, possibly due to interest rate cuts from the U.S. Federal Reserve and ongoing political issues.
After hitting a low of $49,780 on August 5, Bitcoin has started to recover, rising by 14% to $56,770, according to CoinGecko data.
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