- Over $1.2 Billion worth of ETH was withdrawn from centralized exchanges.
- Ethereum’s supply drops while its price rises.
- Bitcoin has consistent outflows from centralized exchanges.
In the last 24 hours, over $1.2 Billion worth of ETH was withdrawn from centralized exchanges which fueled demand for the supply of Ethereum. As a result, Ethereum’s price has risen and its supply has shrunk on many platforms.
Notably, the data from IntoTheBlock, a crypto analytics provider firm, states that around $1.2 Billion worth of ETH was removed from centralized exchanges on September 16. This reports as a new record in the daily outflow from exchanges.
Significantly, IntoTheBlock has tweeted stating the net amount of $1.2B worth of ETH being left from exchanges yesterday. Last time in April, Ethereum’s price surged up by 60% within 30 days after $1B was removed from centralized exchanges.
Moreover, since April the scenario for Ethereum has changed. Last month’s London upgrade implemented a burn mechanism into Ethereum’s fee market, putting additional selling pressure on Ether’s supply. Following the update, the supply of ETH has shrunk and at the same time, the price of ETH has soared.
ETH’s Supply On Exchanges Drops While Price Rises
In the 42 days since EIP-1559 came into being, Ultrasound Money claimed, 309,505 Ether was burned for over $1 billion. According to the crypto expert, Lark Davis, ETH’s supply keeps dropping and its price is still rising.
Significantly, analysts state that Ethereum’s price value would reach $10,000 soon. Moreover, OpenSea, a thriving NFT marketplace that is Ethereum’s DApp by burn rate, counts more than 14% of all ETH removed from the supply. Following that, Uniswap V2 comes with 5.5%, then Tether with 4.9%, and a popular gaming-platform, Axie Infinity with 3%. Ether transfers have also accounted for 8.7 percent of all Ethereum burned.
Since BTC’s price hike in May, Bitcoin has also witnessed consistent outflows from centralized exchanges with a 17% high in supply. According to Glassnode, an on-chain analytics firm, centralized exchanges’ BTC deposits have hit a low level since February 2018. However, daily flows from centralized trading platforms result in imminent price gains and demand in supply.