Within 24 hours, more than $ 1 billion in ether was removed from the centralized exchanges, leading to speculation of an impending price spike for Ethereum as supply on multiple exchanges shrinks.
According to data from crypto analytics provider IntoTheBlock, $ 1.2 billion worth of ETH was withdrawn from centralized exchanges on September 16 to mark a new record inflow.
IntoTheBlock found that the price of Ether rose 60% in 30 days after withdrawing $ 1 billion from centralized trading platforms in April.
Net amount of $ ETH Leaving the exchange just hit a new record
Worth over $ 1.2 billion $ ETH left the centralized exchange yesterday
– IntoTheBlock (@intotheblock) 16.09.2021
The situation has changed since April, however: the upgrade in London last month introduced a mechanism for writing to Ethereum’s fee market, which put heightened deflationary pressure on Ethereum’s supply momentum.
At the time of writing, more than $ 1.1 billion worth of 309,505 ethers have been burned in the 42 days since EIP-1559 launched, according to Ultrasound Money. As a result, Ether has been phased out at about $ 5.05 ETH (18,061) per minute, or $ 26 million daily, since the upgrade.
– Lark Davis (@TheCryptoLark) 17.09.2021
Booming NFT market OpenSea is the top DApp from Ethereum with a burn rate of over 14% of all ETH removed from the offer, followed by Uniswap V2 with 5.5%, Tether with 4.9% and Axie Infinity with 3% . The ether transfer also resulted in 8.7% of the Ethereum being burned.
Related: Data on Ethereum options shows the battle for $ 4,000 ETH will continue for at least another week
Bitcoin has also seen steady outflows from centralized trading venues since peaking at 17% supply in May.
Centralized exchanges’ BTC reserves have fallen to their lowest level since February 2018, according to online chain analytics firm Glassnode.
The foreign exchange balance is at its all-time high at 17% and thus reached the exact lowest point of the sell-off in March 2020.
The trend changed that day. pic.twitter.com/CooGIBmaCh
– Yann & Jan (@Negentropic_) September 14, 2021