In less than 24 hours, more than $1 billion worth Ether was removed from central exchanges. This has led to speculation about possible price gains for Ethereum due to shrinking supply on many trading venues.
Data shared by IntoTheBlock crypto analytics provider, ETH outflows were $1.2 billion on September 16th. This is a new record for short-term outflows.
IntoTheBlock reported that Ether’s prices rose by 60% within 30 days following the withdrawal of $1 billion from centralized trading platforms.
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
However, the situation has changed significantly since April. The London upgrade last month introduced a burn mechanism to Ethereum’s fee market, increasing deflationary pressure on Ether supply dynamics.
According to Ultrasound Money, 309,505 Ether, worth more than $1.1 Billion, has been burned at the time of writing. This is in 42 days since EIP-1559 was launched. Accordingly, Ether has been taken out of supply at a rate equivalent to 5.05ETH ($18.061) per minute, or $26 millions daily since the upgrade.
The #ethereum supply keeps falling and the price keeps climbing. Already programmed in $10,000 pic.twitter.com/jRTUYHK4Ca
Lark Davis (@TheCryptoLark), September 17, 2021
OpenSea, a NFT marketplace in boom, is Ethereum’s top DApp. It burns more than 14% of all ETH. Uniswap V2 has 5.5%, Tether has 4.9%, Axie Infinity has 3%. Ether transfers also account for 8.7% of the Ethereum that has been burned.
Similar: Ethereum options data indicates that the fight for $4K Ethereum is less than a week away
Since May’s peak at 17% supply, Bitcoin has seen steady outflows to centralized trading venues.
Glassnode, an on-chain analytics firm, claims that central exchanges’ BTC reserves are at their lowest level since February 2018.
The #Bitcoin exchange accounts have returned to 13.1% circulating $BTC supply. This is a winding down of inflows up to February 2018. The March 2020 sell-off was the bottom that resulted in 17% exchange balance. That day, the trend changed. pic.twitter.com/CooGIBmaCh
— Yann & Jan (@Negentropic_) September 14, 2021
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