Nearly $1.61 billion in ETH has left cryptocurrency exchanges since the beginning of this year. This means that the ether balance on trading platforms is the lowest since 2018.
Less and less ETH on exchanges
The amount of ETH stored on centralized cryptocurrency exchanges has fallen to the lowest levels since September 2018, probably signaling to investors that a bull market awaits us later in the year.
Notably, nearly 550,000 ETH — worth about $1.61 billion — have left centralized trading platforms since the beginning of the year, according to data provided by Glassnode. The massive outflow of coins lowered the ETH balance on exchanges to 21.72 million ETH. For example, in June 2020, there were 31.68 million ETH on platforms of this type.
Interestingly, more than 30% of all ether withdrawals from exchanges took place earlier this week. More than 180,000 ETH left cryptocurrency trading platforms on March 15, respectively.
Data from the blockchain analysis also showed that ETH was expected to leave exchanges this week at an average rate of about 120,000 units per day.
But that’s still not all. The last 30 days have also shown that ether holders have added more than 1 million ETH to the smart contract associated with Ethereum 2.0. The protocol is preparing for a complete transition to proof-of-stake (PoS), which will take place in the summer of 2022.
All this shows us that the supply of ETH in the market is rapidly decreasing. If demand remains at at least the current level – according to the law of supply and demand – the ether price must even continue to grow.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.