Cryptocurrency exchanges are seeing an exodus of Ethereum cryptocurrency from their holdings. According to latest reports from analysts, the exchanges may have lost over 27% in ETH holdings in a space of just two days. Currently, it is reported that over 8 million ETH ($9 billion) are in these centralized exchanges combined.
According to CrypoQuaint, Nuggets’ News and Glassnode show that an exodus of Ethereum tokens is currently taking place. According to Nuggets News’ Alex Saunders, a 10% decrease was first noticed on these exchanges on January 14. According to him, a decrease from 11 million to 10 million ETH was witnessed. He also predicted that at this rate, exchanges will soon be out of ETH altogether.
He followed it up with another revelation earlier on January 15. Here is his tweet:
Exchanges could be out of $ETH within 48 hours. Demand has sky rocketed. Exchange reserves fell 20% from 10M to 8M in the last few hours. With targets of $5k, $10k & $20k long term, I doubt many HODLers will sell their ETH in the $1-2k range. 🌐🖥️👽 #ETH2 #DeFi #NFTs #Gaming #DAO pic.twitter.com/rYPOch2u7p
— Alex Saunders 🇦🇺👨🔬 (@AlexSaundersAU) January 14, 2021
Other data especially from analytics firm Glassnode shows that the current activity means that ETH’s existence on these centralized exchanges are the lowest since July 2018. CryptoQuant gave a figure of around 21% decrease in their holdings as well.
What to Make of the ETH Exodus?
The emptying of any major coin especially a big one like Ethereum or Bitcoin often results in a bullish move for the cryptocurrency. However, this latest move by users to offload ETH from exchanges might need some clarifications before it can be deemed as a game-changing occurrence. For example, 600,000 ETH or around 30% of the move were later found to be an internal transfer within Bitfinex’s own wallets. The reason why they were reported as non-exchange wallets is because CryptoQuant had no knowledge of them. So, we are already down by 30% of the total exodus as it means that those ETH never left Bitfinex in the first place. So, investors need not jump on the ETH bandwagon just yet. However, apart from the reported coin exodus, ETH is definitely showing some deeply bullish sectors and may result in considerable price appreciation for the cryptocurrency. The Ethereum 2.0 launch is now going as scheduled and tens of thousands of users are staking their ETH coins for mining rewards as opposed the conventional Proof-of-Work system. So, the future is bright for the cryptocurrency if all updates go according to plan.
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