Binance Sees Massive $1.2 Billion Inflow Amid Market Downturn

Binance, the world’s largest cryptocurrency exchange, experienced a staggering daily net inflow of $1.2 billion as the crypto market witnessed a bloodbath that saw prices of several popular digital assets plummet significantly.

This marks one of the largest 24-hour net inflows seen by the exchange this year. 

Strong Investors’ Confidence 

Citing data from DefiLlama, Binance CEO Richard Teng shared the update on X, stating that the metric suggests investors’ strong confidence in the exchange. Teng also noted that the exchange saw one of its highest trading volumes since the beginning of the year.

In addition to the daily inflow, Binance experienced an inflow of $651 million over the past week and $2.35 billion over the past month. Moreover, it currently holds over $100 billion in user assets.

A Dump?

While the significant inflow of $1.2 billion into Binance suggests investors’ strong confidence in the platform, several other factors might be at play. A massive inflow could also mean increased selling pressure from investors due to market uncertainty.

Typically, investors move their crypto assets into exchanges to sell them to either take profit or liquidate their holdings. Yesterday, data from CoinGlass revealed that investors lost over $1 billion in liquidations amid an uncontrolled decline in the prices of major cryptocurrencies. For instance, bitcoin (BTC) dropped by 18% on Monday to enter a five-month low of around $49,000, while ether (ETH) simultaneously hit a seven-month low of $21,000.

While Binance received the largest daily inflow, investors also poured $276 million into Bybit, $96 million into Bitfinex, and $84 million into Gate.io amid the market downturn.

Meanwhile, the global crypto market is witnessing a rebound, which Teng believes aligns with current market trends. According to CoinMarketCap, the entire crypto market cap surged by 8% over the past 24 hours to around $2 trillion. BTC and ETH are up around 6%. Other popular cryptocurrencies, including BNB, XRP, and SOL, increased by more than 12%.