Data surrounding capital inflows into the crypto market elucidates that investors have been flooding into the market

Throughout August, the crypto market has witnessed some volatility. While Bitcoin has been mostly stable between $ 11,000 and $ 12,000, smaller altcoins have seen colossal fluctuations, with the development of the DeFi industry making many people witness parabolic dynamics.

Ethereum plays a significant role in this, as the blockchain’s need for a network has a ripple effect that has a positive impact on its price. Eventually, ETH rallied to as high as $ 490 before it lost momentum and fell to as low as $ 320.

The entire market has been impressed by the capital inflow of selling pressure in recent weeks, which has caused many altcoins to post huge losses. That being said, the data around the capital inflow into the crypto market makes it clear that investors are entering the market.

Top-level exchanges saw trading volume spike almost 60% last month, while lower-tier platforms provided access to smaller and highly speculative altcoins ore has increased 30% in volume.

It’s important to note that institutional trading volume has also increased, with CME futures trading activity rising by more than 36%.

The crypto market struggled with the chaos as the stalls rose in price

Over the past few days, the strong uptrend that had previously guided the entire market higher has begun to slow down.

Bitcoin, which peaked at a high of $ 12,200 last week, has since dropped significantly lower, unable to create any apparent buying pressure.

Altcoins have been hit hard by this drop in BTC, with many falling as much as 50%.

Ethereum maintained this decline, as the cryptocurrency slipped from as high as $ 490 to as low as $ 320. This drastic downward movement created a headwind that severely damaged the strength of the aggregate market.

According to a recent report from CryptoCompare, the crypto market has seen a massive influx of capital from new and veteran traders. This is reflected in the 58.3% spike in trading volume witnessed by leading exchanges.

The report revealed:

“In August, Top-Tier volumes increased 58.3% to $529bn while Lower-Tier volumes increased 30.2% to $291bn. Top-Tier exchanges now represent 64% of total volume (vs 60% in July).”


Interestingly, the volume of institutional transactions on CME has also increased. The report revealed that a total of 203,867 Bitcoin contracts were traded in August, marking a 36.3% increase from July.

The report stated:

“Monthly CME futures contract volumes have increased 36.3% since July to reach 203,867 contracts traded in August.”

This is a positive sign for the crypto industry, as it shows new capital has been pumped into the market during the past few weeks. That being said, Bitcoin must maintain above $ 10,000 and provide the aggregate market with an extra chance for this capital to continue to ignite the flame of recent uptrend guidance.

Read more:

Follow us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like