Crypto traders continue to purchase more cryptocurrencies, despite the recent dip and this has been shown by the recent money inflows into cryptocurrency exchanges like Binance.
Binance Sees Massive Inflows
On August 8, Lookonchain reported that Binance, the largest crypto exchange, saw a net inflow of $2.4 billion since the market drop on August 5. Most of this money came in the form of stablecoins, with $1.33 billion in USDT and $519 million in USDC, showing that many are taking advantage of the lower prices.
This shows that some are confident in the market and are buying while prices are down. Binance experienced a sharp increase in trading activity on August 6, with volumes surpassing $50 billion, the highest since mid-April. Although trading volumes have since dropped to around $20 billion, this is still higher than the weeks before the dip.
Coinbase also saw a similar rise in trading activity on August 6, where volumes spiked to $9 billion before settling back to $3.2 billion, according to CoinGecko. Since the market hit its low on August 5, the overall market value has climbed by about 13% to $2.1 trillion, meaning around $250 billion has returned to the markets due to this dip-buying trend.
See Also: Binance Exchange Sees Over $1.2B Inflows In a Single Trading Day
It was also noted that larger buyers are getting in on the dip, with big amounts of stablecoins flowing into the crypto liquidity provider, Cumberland.
Additionally, there has been some buying of Ethereum over the past few days, as shown by positive inflows into spot ETH ETFs, while spot Bitcoin ETFs initially saw outflows. However, this changed on August 7, with $23.7 million leaving ETH ETFs, while Bitcoin ETFs saw a net inflow of $45.1 million, according to Farside Investors.
On-chain analytics platforms also showed that holders with between 10 and 1,000 BTC quickly bought more Bitcoin during the price drop that brought Bitcoin below $50,000, as mentioned in a post on X (formerly known as Twitter) on August 8.
As for the total market, its value has stayed steady over the last 24 hours, around $2.1 trillion, which is similar to levels seen in mid-February. Bitcoin’s price dropped to $54,600 on August 7 but recovered to $57,500 during the Thursday morning Asian session.
However, Ethereum is still struggling, trading below $2,500 and not showing signs of recovering to that level, sitting at $2,432 at the time of writing. Most altcoins are also still bearish, except for XRP, which is bullish due to a favorable legal ruling and a smaller-than-expected fine in its ongoing case with the SEC.
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