Ethereum Sees Record Daily Volume Withdrawn From Centralized Exchanges
September 17 2021 - 1:00PM
NEWSBTC
Exchange supply in the crypto market has been down across the
board, and Ethereum has been no exception. The digital asset has
grown in popularity due to the rise of decentralized finance
(DeFi). Due to its token being the primary mode of payment on the
protocols and Ethereum being the largest smart contracts platform
in the market. This has led to increased fate in the asset by
investors. Many of whom see the price of ETH hitting as high as
$10,000 before the year runs out. Related Reading | Cathie
Wood Reiterates $500K Bitcoin Call, Reveals Ethereum Rebalancing As
sentiments have skewed more into the positive for the asset, hold
sentiments around ETH have risen. This is evidenced in the current
exchange balance levels. 2021 has seen a declining trend in
exchange reserves of the digital asset, and recently, outflows from
exchanges have gone up again. This time marking record outflows in
the span of a day. Ethereum Outflows In A Day Totals $1.2 Billion A
recent report from IntoTheBlock showed that Ethereum saw outflows
from centralized exchanges totaling $1.2 billion in a single day.
IntoTheBlock is a data analytics platform that provides insights
into the crypto market. The number represents the highest amount of
ETH to leave exchanges in a 24-hour time frame. Beating the
previous record that was $1 billion leaving exchanges in a day.
Related Reading | TA: Ethereum Consolidates, What Could Spark
A Fresh Rally The net amount of $ETH leaving exchanges just hit a
new record Over $1.2B worth of $ETH left centralized exchanges
yesterday Last time $1B+ left CEXs, #Ethereum increased by 60%
within 30 days pic.twitter.com/wfRuX11Rtk — IntoTheBlock
(@intotheblock) September 16, 2021 It has been reported that both
Bitcoin and Ethereum exchange reserves have continued to plummet
despite recent price highs. With numbers this low, it shows that
investors are taking their assets off exchanges for personal
safekeeping. Indicating that users are not selling off their
holdings to take profits. ETH exchange outflows total $1.2 billion
in one day | Source: IntoTheBlock Exchange reserves for bitcoin are
now only 6.5% of its entire supply and Ethereum reserves on
exchanges are about 15.7% of its total supply. Trends indicate that
this number will likely dwindle over the next several months. What
This Means For ETH Price This record amount leaving centralized
exchanges holds some interesting implications for the digital
asset. The last time that much Ethereum left exchanges, the price
of ETH witnessed a massive surge that saw the price of the asset
grow over 60% of its value. If history repeats itself again, then
the price of ETH is headed for a new all-time, likely reaching up
to $4,500 this time around. Exchange reserves plummeting can lead
to a supply squeeze that would send the price shooting higher. Once
the reserves deplete enough to the point where demand on the
exchanges is exceeding the supply of coins available, then another
bull run is imminent in the future of the asset. ETH still trading
above $3,400 | Source: ETHUSD on TradingView.com Currently,
Ethereum is still trading above $3,400 at a price of $3,457. It is
still trending lower than its 24-hour highs, but movements show a
return into the green before the trading day officially opens.
Featured image from Decrypt, chart from TradingView.com
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