Crypto enthusiasts are still snapping up assets after this week’s market shakeup, and the trend is evident in the activity on major exchanges.
On August 8, Lookonchain, an on-chain analytics platform, reported that Binance, the world’s largest crypto exchange, saw a net inflow of $2.4 billion since the market dip on August 5.
Interestingly, a significant portion of this inflow was in stablecoins, with $1.33 billion in USDT and $519 million in USDC. This suggests that retail investors are taking advantage of lower prices and 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
“Some investors seem to be confident in the market’s potential and are seizing the opportunity to buy at lower prices.”
Retail Investors Pounce on the Dip
On August 6, Binance’s trading volumes surged, hitting their highest levels since mid-April, with a peak of $50 billion as retail investors rushed in. While daily trading volume has since cooled to around $20 billion, it remains slightly above pre-slump levels.
Similarly, Coinbase experienced a spike in trading activity on August 6, with volumes jumping to $9 billion before settling back to $3.2 billion, according to data from CoinGecko.
Since the market bottomed out on August 5, the total crypto market capitalization has rebounded by about 13%, reaching $2.1 trillion. Roughly $250 billion has flowed back into the markets as investors buy the dip.
Lookonchain also noted that institutions have been participating in the dip buying, with significant 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
There’s also been institutional interest in Ethereum over the past few days, with spot ETH ETFs seeing positive inflows, contrasting with outflows from spot Bitcoin ETFs.
However, this trend shifted on August 7, with a $23.7 million outflow from ETH ETFs, while BTC funds saw a positive inflow of $45.1 million, according to Farside Investors.
In addition, on-chain analytics platform Santiment reported that entities holding between 10 and 1,000 BTC “quickly accumulated during the price dip that saw Bitcoin drop below $50,000,” according to a post on X on August 8.
Crypto Market Outlook
The crypto market cap has remained stable over the past 24 hours, holding around $2.1 trillion, returning to levels seen in mid-February.
Bitcoin briefly dipped to $54,600 in late trading on August 7 but recovered to $57,500 during the Thursday morning Asian session.
Ethereum is still struggling, dropping below $2,500 and unable to reclaim that level, trading at $2,432 at the time of writing.
Most altcoins remain in bear market territory, with the notable exception of XRP, which received a boost from a favorable court decision and a smaller-than-expected fine in its ongoing legal battle with the SEC.
