Crypto Dip Buying Continues as Binance Sees $2.4B Inflows
On Aug. 8, on-chain analytics platform Lookonchain reported that the world’s largest crypto exchange, Binance, experienced a net inflow of $2.4 billion since the market dip on Aug. 5.
It added that the majority of that was in stablecoins with an inflow of $1.33 billion in USDT and $519 million in USDC. This suggests that retail has been buying the dip, it noted.
“Some investors appear confident in the market and are buying the dip.”
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
Retail Buys The Dip
Additionally, Binance trading volumes spiked to their highest levels since mid-April on Aug. 6 when they topped $50 billion as retail started loading up.
Daily trading volume on the exchange has since fallen back to around $20 billion which is still marginally higher than the weeks leading up to the slump.
Coinbase experienced a similar surge in daily trading volumes on Aug. 6 when they spiked to $9 billion, before falling back to $3.2 billion, according to CoinGecko.
Since the August 5 market bottom, total capitalization has recovered around 13% to reach $2.1 trillion, and around $250 billion has reentered the markets in the dip buying spree.
Lookonchain also observed institutions buying the dip with large stablecoin inflows to crypto liquidity provider Cumberland.
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
Furthermore, there was some institutional dip buying for Ethereum over the past couple of days as spot ETH ETFs registered positive inflows while there were outflows for spot Bitcoin ETFs.
However, that trend ended on Aug. 7 when there was an outflow of $23.7 million from ETH ETFs while BTC funds flipped positive with a $45.1 million aggregate inflow, according to Farside Investors.
Additionally, on-chain analytics platform Santiment revealed that entities with total holdings between 10 and 1,000 BTC “rapidly accumulated on the price dip that saw crypto’s top asset fall below $50,000,” in a post on X on Aug. 8.
Crypto Market Outlook
The crypto market cap has remained stable over the past 24 hours, hovering around $2.1 trillion, which is back at mid-February levels.
Bitcoin dipped to $54,600 in late trading on Aug. 7 but managed to reclaim $57,500 during the Thursday morning Asian session.
Ethereum remains weak, falling below $2,500 and failing to reclaim that level, trading at $2,432 at the time of writing.
Most altcoins are also still at bear market levels, aside from XRP, which got a big boost on the back of a favorable decision and a smaller-than-expected fine in its ongoing battle with the SEC.
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